Pensions - Articles - Portal Financial welcomes Pensions Awareness Day

 1) Taxable pension income – Many people don’t understand that the pension income received is assessed against all taxable income for the year. 

 2) Tax-free cash – Many people think that after taking their 25% tax-free allowance, they can get another 25% tax free next year. They can’t.

 3) Income – Many of those saving for a pension do not realise that they can start taking an income from their pension before they reach state pension age.

 4) Transferring out – People do not understand that, depending on their scheme, they may need to transfer out of the pension scheme that they are in in order to release money from it, including tax-free cash.

 5) Death benefits – People understand that certain annuities can provide a pension to a spouse when they die, but are often unaware that drawdown and unused funds can also be left to beneficiaries.

  

 Jamie Smith-Thompson, managing director of Portal Financial, says:

 “Despite the increased level of debate around pensions following recent reforms, people are still confused. As an industry, we must find a way of providing clearer guidelines and more comprehensive information. Pensions Awareness Day is a great opportunity to educate the public and encourage them to save.”