According to FCA statistics, the total amount of withdrawals from pensions has risen since April 2015 when the pension freedom laws were passed. An increasing number of people aged 55 or over have benefitted from accessing pension savings.
There is an argument to suggest that drawing from an ISA is a better option than raiding a pension fund. If people wish to avoid future inheritance tax issues, then drawing from a pension should be the last option. While your money is held within a pension, released as a regular income, it is protected from most inheritance tax.
A pension fund is a tax efficient option, and even though it might be tempting to dip in, there may be better options for those looking to enjoy retirement. If you are looking for a source of funds to help you enjoy your retirement years, it may be best to speak to a financial advisor before making your choice.
The content in this article was correct on 10th June 2019. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on pensions for teachers and non-teachers. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.