• 01 Dec 2016

Anyone aged 55 or over can now access their pension savings built up in a money purchase (defined contribution) scheme. This access can be as a one-off lump sum payment, an annuity purchase or as flexi-access draw-down. The downside is that once you start to access your pension in this way, the amount of further pension contributions you can make is restricted to £10,000 per year. This is to prevent people from drawing funds from their pension scheme and replacing the money in the same or another pension scheme, with additional tax relief.

From 6 April 2017, the amount you can contribute into a pension scheme after starting to draw your benefits will be reduced to £4,000 per year. If you don’t use that allowance in the year, it can’t be carried forward to the next tax year.

You can continue to save for retirement in other ways, such as using an Individual Savings Account (ISA). The current annual ISA contribution limit is increasing from £15,240 to £20,000 on 6 April 2017.

Preparing for digital business records
Online Tax
Previous post
VAT flat rate scheme skewered
VAT
Next post

36 thoughts on “Pension Recycling”

  1. I was very happy to find this website. I need to to thank
    you for your time just for this wonderful read!! I definitely savored every bit
    of it and I have you bookmarked to look at new
    stuff in your website.

  2. Wow, wonderful weblog layout! How lengthy have
    you been blogging for? you made blogging glance easy.
    The whole glance of your web site is great, as neatly as the content!

  3. Attractive section of content. I just stumbled upon your website and in accession capital to assert that I acquire in fact
    enjoyed account your blog posts. Any way I’ll be subscribing to your augment and even I achievement you access consistently fast.

  4. Hi there everyone, it’s my first pay a quick visit at this web site,
    and piece of writing is genuinely fruitful in support of me, keep up posting these
    articles or reviews.

  5. At this time it seems like Drupal is the best blogging
    platform out there right now. (from what I’ve read) Is that what you’re using on your blog?

  6. This design is incredible! You definitely know how to keep
    a reader amused. Between your wit and your videos, I was almost
    moved to start my own blog (well, almost…HaHa!) Fantastic job.
    I really enjoyed what you had to say, and more than that, how you presented it.
    Too cool!

Leave a Reply

Your email address will not be published.