DWP update as access to certain benefits may be stopped over vital pension rule | Personal Finance | Finance


“With millions of people starting to build up modest pension pots through automatic enrolment, this issue is only going to get bigger.  

“It is unreasonable to expect individual savers to understand all of this complexity, so the industry and regulators need to work together to help people make the right choices.”

The benefits calculator website Entitledto has also provided guidance on the matter for those of “working age”. 

It states: “If you take your pension out as a lump sum then it counts as capital (savings). Any savings under £6,000 are ignored but above this level they will affect your benefits. The calculation uses a formula which, in effect, assumes that you get interest of 20 percent of these savings above £6,000.

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