Introducing pension freedom

By Dean

02 Dec 2015

One of the biggest shake ups to pension regulations in years came into effect on April 6, promising to give greater flexibility over how we get to spend our pension.

By Kristen Durose, managing director, Red Star Wealth Management

Then came the detail: taxation, changes in death benefits, do you have to have a minimum level of guaranteed income?

This feature will hopefully provide you with some of the detail, get rid of some myths and help you establish a clear idea of your options. Of course you can also arrange a meeting with Red Star Wealth, at our cost and without obligation, to discuss your personal circumstances.

  1. You no longer have to purchase a pension annuity, that is the regular income paid usually for life after you have handed over your pension fund. You can still do this if you wish, and for many people the security of a guaranteed income will still be favourable.
  2. You are not limited to one chance to take a single tax-free lump sum worth 25 per cent of your fund, with the rest taxed as income afterwards. Instead, you can make as many withdrawals as you want, each time getting 25 per cent tax free and the rest taxed like income, provided your scheme allows this. Of course if you do want a one off lump sum up to a maximum of 25 per cent of the fund value, you can do this.
  3. If you have already drawn your tax free cash using income drawdown, you might not necessarily have to make any changes to your current arrangements. It is still possible to use a drawdown plan to vary your pension income or take none at all.
  4. If you have pension benefits within an occupational scheme such as the NHS, you won’t be able to use the new freedoms unless you transfer your fund, which needs thorough investigation by a suitably qualified adviser.

You can only take money from your pension when you are 55 or older – other than in certain circumstances, like having a terminal illness – and there are still rules about how to do this without having to pay tax. Whatever your personal situation, professional advice is invaluable in investigating your options, and at Red Star Wealth we are here to provide that advice, honestly, openly and reliably.

Enjoyed this? Read more from Dean

Latest news

1

Businesses should look at Net Zero as an 'opportunity, not a challenge' Lancashire Net Zero Conference 2025

Businesses should look at Net Zero as an 'opportunity, not a challenge'

20 Jun 2025

2

£4m investment across East Lancashire power network EV electric vehicle Electricity NW

£4m investment across East Lancashire power network

20 Jun 2025

3

Your time to shine in the Lancashire Tourism Awards Winners Of The Lancashire Tourism Awards 2024 Held On Tues 11 Feb 2025

Your time to shine in the Lancashire Tourism Awards

19 Jun 2025

4

Employer event to help keep region’s workers healthy Ben Harrison

Employer event to help keep region’s workers healthy

19 Jun 2025

5

Plan to get Lancashire working Lancashire Combined Authority

Plan to get Lancashire working

19 Jun 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

Emergency First Aid at Work – June 2025
Chamber Logo1.png.png
LBV Hub Seminars
23 Jun 2025 - 23 Jun 2025

Emergency First Aid at Work – June 2025

FGH Training 3rd Floor, Storey House, White Cross Business Park,, Lancaster, LA1 4XQ

09:00 - 16:00

Business Bike Club – July
Chamber Logo1.png.png
LBV Hub Networking
01 Jul 2025 - 01 Jul 2025

Business Bike Club – July

Various, Lancaster, LA

08:00 - 09:30

Chamber Breakfast Networking – July
Chamber Logo1.png.png
LBV Hub Networking
02 Jul 2025 - 02 Jul 2025

Chamber Breakfast Networking – July

St John's Hospice, Slyne Road, Lancaster, LA2 6ST

08:00 - 10:00

The Marketing Metrics that Matter – July 4
LBV Hub Seminars
04 Jul 2025 - 04 Jul 2025

The Marketing Metrics that Matter – July 4

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

08:30 - 11:00

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin