The Taxing Side of Planning Your Retirement - Michael Lansdell

Whatever you have planned for your retirement, there are many elements you need to put in place before you can enjoy your well deserved time off. Ensuring you have in place the most suitable pension scheme for you is just one of the necessary steps. With many options available, it’s crucial to understand the benefits of each, as well as your eligibility.

A welcome change for many pension holders came in the shape of the Pension Reform in April 2015, which increased flexibility and access to funds from the age of 55.

There is no limit on the amount permitted to be taken from pension pots once the policy-holder has reached this milestone age. However, only a quarter of these funds are tax-free so managing the other 75% needs serious consideration. Any amount removed from the pot beyond the first tax-free-quarter, will be added to other incomes and taxed at the relevant tax band rate – which could mean 45% for some professionals.

If the 25% tax-free lump sum is taken from the pot, there are several ways to make the most of the remaining 75%:

It’s important to consider all options carefully – depending on your personal circumstances your priorities may vary from someone else’s. Best thing to do before you decide? Get professional advice on keeping investments high and deductions low.


Specialist medical and dental accountants Lansdell & Rose offer business advice alongside regular tax planning and financial accounting. Visit or call 020 7376 9333.