Pension Changes: What Happens Now?
After several months of waiting and speculating, the pension changes have finally arrived and now those over the age of 55 are able to access their entire pension fund for the very first time. So, after much debate and anticipation, what happens now?
What are the new pension laws?
If you’ve managed to escape the pension talk over the past several months, here’s what you missed:
- Under old laws, everyone who withdrew all of their pension would have been taxed 55%. But now the changes are in place, pensions can be withdrawn at a taxable income rate.
- Some of those who purchased an annuity before freedoms were announced may also be entitled to access their pension.
- As a result, many of those who were previously left with no choice but to buy an annuity, (usually bought to guarantee retirement income) now have the option to access the entirety of their savings.
What do they mean?
The new rules allow more of us to get our hands on a little extra cash, something we believe is certainly no bad thing – unless you have plans to blow it all. In which case, you could hit a few bumpy roads during retirement. And the changes appear to have kick-started people into exploring the different options for retirement.
Many of the properties we manage on behalf of landlords form part of a portfolio to build income. And quite often, this strategy is intended to provide a comfortable retirement. Let’s face it, we all want to eventually hang up our work wear and put our feet up.
Property does have its perks. Aside from the income, it also benefits from capital growth should you want to sell it later down the line. Another plus, is that landlords can be as involved or as far away from the nitty-gritty as possible. The fact of the matter is, property is one of the best performing assets that one can have. It’s also an asset you can pass onto your partner, kids, grandkids, best mate – something you’d probably be unable to do with something like a traditional annuity.
The thing is, as we enjoy retirement, we don’t generally want to be worrying about a leaky roof or a broken boiler, and precious time shouldn’t be spent holding property viewings or drawing up tenancy contracts – now is the time to start living.
And for those people, Ascend can help. We want to take care of all the hard work for you, so you can be free to spend your time doing the things that matter to you most. Our clients remain in complete control without having to get involved in the general day to day upkeep, and our “hands off” style means that landlords bag more free time for themselves.
If you’re looking for an independently run, independently minded estate agent with a difference, give us a call today at our Manchester Office on 0161 637 8336 or Liverpool Office on 0151 305 2577. If you prefer you can submit an enquiry online.