Will you Get Taxed on Your Cashed Out Pension? A pension fund is money saved up for your retirement. But under rules introduced in April 2015, you now have an option to take out your pension before you reach the normal retirement age of 65. This is both good news and bad news. Good, because […]
How do cashed out pensions work? In the pension freedom reforms, you are allowed to make as many withdrawals as you want from your pension pot. For each withdrawal, 25% of the amount will be tax-free and 75% will be taxed like your income. This spares you from paying a huge amount of tax, because […]
Just when pensioners think they can enjoy a huge payout with their retirement fund, it turns out that the government will enjoy it more. The bigger the retirement fund, the bigger the taxes that are imposed on it. But that’s not all; it’s also been revealed that the new pension freedoms will have inaccurate tax […]