I'm 64 - should I move £20k a year from my pension into an Isa after inheritance tax raid in the Budget?
Daily MailAt 64, I'm looking into taking my pensions via drawdown. Tanya Jefferies, of This is Money, replies: Chancellor Rachel Reeves announced plans in the Budget to make pensions liable for inheritance tax like other assets such as property, savings and investments starting from April 2027. Ray Black, chartered financial planner and managing director of Money Minder Financial Services, replies: Even with the upcoming inheritance tax changes from April 2027, keeping your money in a pension plan still has some strong advantages. Managing tax on withdrawals: While Isas let you take out your money tax-free at any time, pensions still allow 25 per cent of your pot to be withdrawn tax-free. Ray Black: There's a chance the new rules could be modified before April 2027, so it's important not to have a knee jerk reaction Spouse-to-spouse inheritance tax exemption: A key benefit of pensions is that when you pass away, your pension can be passed over to your spouse without them having to pay inheritance tax, thanks to the spouse-to-spouse inheritance tax exemption.
History of this topic
Funding the future: The options for your long term savings
The Independent
Budget 2016: Lifetime Isas could signal the death knell for pensions, says retirement industry
The IndependentDiscover Related