Quick Links

Early Retirement

From April 2006 pension rules were simplified which has implications on all of us on how we save for retirement and how eventually we take pension benefits.

Currently if you are 50 or over you may be able to take early retirement pension benefits from your pension fund however pension schemes operate under many different sets of rules and can prove extremely complicated and difficult to understand. As we move to 2010 the pension minimum age will go up to 55. Another major change is that tax free cash is set at a maximum of 25% of your pension fund.

The new rules limit the amount you can build up in your pension fund. This "Lifetime Allowance" stands at £1.5 million in the 2006/07 tax year.

By having one set of rules going forward it will be easier for people to plan for their retirement but in the interim it will take time for company schemes to adapt their pension rules to the new regime so getting advice on your pension options if you are considering early retirement now is recommended.

What can you do?

Review your overall pensions
If you are in an employer scheme talk to the pension administrator about what reforms are being made.
Take advice on protecting your pension funds from the lifetime allowance. If you have life insurance in connection with your pension, in the event of your death before taking retirement the insurance paid out may push your pension over the lifetime allowance leaving your beneficiaries with a tax bill.

In this respect Eden Personal Financial Planning offer you the benefit of Independent advice from experienced and qualified pension advisers who are able to consult with you about all UK schemes available therefore offering you comprehensive impartial advice either face to face or direct without any obligation. Their service offers: