Thanks to Lee from the Citizen’s Advice Bureau for this useful advice. Ed
Pension changes went live in Britain in April 2015 allowing many people over the age of 55 to take money from their pensions even if they are still working.
People facing debt issues may find this appealing to clear outstanding commitments. However, there are long term effects to consider:-
- If more than 25% of the pension is taken out the extra will be treated as “income” in that year and may increase personal taxation
- Taking out a lump sum may reduce any current or future entitlement to welfare benefits
- Retirement can last for many years and pensions may be needed
Get impartial advice
Citizens Advice strongly advise you to seek independent, impartial advice before making any decisions. We can provide information on a variety of options and also assist you with debt issues.
Taking advice will help you to protect your long term income and alleviate any financial problems.
To access debt assistance from our money advice team, please either contact via advice-line on 03444 111 444 or drop in to the local Newport Bureau.
