Poor article – Making the most of pension lump sums: overview for contractors

[ChimpMaster]

Thanks hgllgh I'll look into flex-access. I will very likely take the 25% ASAP because it'll be a nice little lump to spend before I get too old to enjoy it. The remainder is not needed as income so I can leave it and take it when needed, of course paying tax as due at that point.

[contractorZ]

No. go talk to a qualified Wealth Manager, not an IFA. Apart from anything else you don't need an annuity until 75, there are better ways to park £300k

You don't ever need to buy an annuity these days. The rules changed that you had to buy one at 75.

Interesting you highlighted the difference between a qualified Wealth Manager and a qualified IFA.

I have been making use of the free Wealth Management Service from Fidelity to meet my Relationship Manager who happens to be a Qualified Wealth Manager. So not a personal advice service with an additional fee. It may meet some peoples needs for someone to chat to about their goals etc. For some people it won't be enough.

It is not a formal personal advice service, but I have been very impressed at the offering and professionalism and reviews when meeting face to face. All sessions are recorded.

[contractorZ]

Thanks hgllgh I'll look into flex-access. I will very likely take the 25% ASAP because it'll be a nice little lump to spend before I get too old to enjoy it. The remainder is not needed as income so I can leave it and take it when needed, of course paying tax as due at that point.

You may already know this but the minimum retirement age is rising to 57 so worth checking out if this impacts you for when you can draw tax free cash

You might want to think about drawing the tax free cash in chunks just before you need it. Leave it in the tax free wrapper for as long as possible as you are a long way from even the old lifetime allowance. That may be what you were planning anyway.

What does this mean for me?

If you were born after 5 April 1973	The earliest date you can access your pension savings will be delayed by two years
If you were born after 6 April 1971 but before 6 April 1973	You’ll have a window from your 55th birthday to 5 April 2028 to access your pension savings before the NMPA increases to 57. If you choose not to take any pension savings during this period, you’ll need to wait until your 57th birthday
If you were born on or before 6 April 1971	You won’t be impacted because you’ll already have reached age 57 by 6 April 2028