Minimum age to draw pension benefits rises to 55
Those aged between 50 and 54, will have to wait until their 55th birthday before accessing tax-free cash or an income from their pension unless action is taken by 5 April 2010, advises accountancy and financial services group, Smith & Williamson.
‘While a delay is unlikely to affect most people, if someone is counting on drawing on their pension early to pay off a mortgage or supplement their income, they will need to take action now,’ says Mike Fosberry, national head of Financial Services at Smith & Williamson.
‘The balance of the fund can be left until a pension income is required. However, drawing on a fund early will affect how the fund can be distributed on death,’ he continues.
If considering drawing pension benefits in the form of income, it is also important to consider whether this should be done by 5 April 2010 and if so, what form the income should take which will be dictated by the amount of income required and how much investment risk the individual is prepared to accept. A wide range of options is available to help meet objectives.
Smith & Williamson’s pension specialists are here to provide guidance and assistance where necessary but people affected by this change will need to act quickly as the deadline is looming.
For further information contact
Mike Fosberry, national head of Financial Services at Smith & Williamson
020 7131 4250
Email Mike Fosberry
Press office
Jess Koslow/ Kate Harrison 020 7131 4264/ 4228
Disclaimer
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.
Note to editors
Smith & Williamson is an independent professional and financial services group employing over 1,500 people. The group is a leading provider of investment management, financial advisory and accountancy services to private clients, professional practices and mid-to-large corporates. The group operates from offices in London, Belfast, Birmingham, Bristol, Dublin, Glasgow, Guildford, Maidstone, Salisbury, Southampton and Worcester.
Smith & Williamson Limited
Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. A member of Nexia International
Smith & Williamson Financial Services Limited
Authorised and regulated by the Financial Services Authority
