New QROPS rules for 2015. New flexible pension drawdown rules will come into effect in the UK starting April 6th, 2015. The new rules have surprised some British pensioners who are very unclear as to the rules.
If you cash in your pension, then you are liable to your highest marginal rate of tax (20% – 45) on your pension income. Pensioners need to be aware of the options and what they will forego by cashing in their pensions too early.
Even the Organisation for Economic Co-operation & Development (OECD) has warned against these new freedoms which could end up leaving pensioners with little or insufficient income in retirement.
See our guide to the new pension freedoms below and what it means for you and your pension.