2015 pension freedoms

The 2015 pension freedoms allow people aged 55+ to access their ‘Defined Contribution’ or ‘Money Purchase’ pension fund as they wish. Money purchase pensions include most personal pensions and stakeholder pensions, including those arranged through your employer, where the pension you receive is related to the contributions you make. They do not include ‘Defined Benefit’ pensions, where the pension you receive is determined by your salary and length of service.

The biggest change is to allow people aged 55+ to withdraw the whole of their pension fund as one lump sum.

The 2015 rules will not only bring freedoms and choice to use your pension fund as you wish, but also the need for careful planning to ensure that you have sufficient income for the whole of your retirement.