Spalding and Market Deeping-based chartered accountants Moore Thompson welcomed nearly 100 business owners from across the East of England to an advice workshop on new pension freedoms.
The practice hosted a free seminar to explain the new rules that came into force a month ago to a group of leading businessmen and women at South Holland Centre, Spalding.
There are still many people who may be unsure of the changes that came into force on April 6 so if you are unsure about what the changes may mean for you, it is best to seek professional advice to ensure your needs are met well into your retirement.Mark Hildred, managing partner at Moore Thompson Chartered Accountants
During the seminar, experts from Moore Thompson and sister firm, MT Financial Management, covered a range of topics, including changes to state pension entitlements, personal pensions, pension death benefits and potential tax implications when withdrawing a pension.
Mark Hildred, managing partner at Moore Thompson, said: “The event was very well attended and those that came along said they had really benefited from the advice given by our experienced team.
“But there are still many people who may be unsure of the changes that came into force on April 6.”
People with a defined contribution pension were, for the first time, given the ability to withdraw their entire pension pot as a lump sum.
A quarter of this lump sum can be withdrawn tax-free, while the remaining amount is taxed at each individual’s marginal income tax rate.
Alongside this, individuals who die with a defined pension before the age of 75 can now pass on their remaining pension pot tax-free without having to pay a punitive 55 per cent tax charge, while those who die after 75 can still pass on their pension pot which is also taxable.
Trevor Wilshire, chartered financial planner at MT Financial Management said: “The new tax year is likely to bring a rush of requests under these new rules, so there will invariably be a delay involved.
“But poor investment performance could mean that the capital is used faster than you planned and if this happens, your withdrawals will need to be reassessed to give you as much of the capital as possible for future years.
“However, and most importantly, taking your pension over a number of years instead of withdrawing it all at once will reduce your tax bill so the best option may be to wait before trying to access your money.”