The government has confirmed plans to allow defined contribution members to use £1,500 of their pension tax-free to take advice on their pension.
This can be used three times over the life of their pension savings, but only once in any tax year.
This is a huge boost for pension members to ensure that whatever their life stage they can take advice to help them make the most of their pension and reach their retirement goals.
This was originally raised in last years Budget but the limit then was announced at £500, so it is a real boost to see that following consultation, this has now been raised.
Focused advice on something like pension planning is already available with some providers. However, raising this limit to £1,500 and publicising this widely will hopefully mean many more employers will arrange this provision for their staff and so many more employees will take advice and help to boost their financial security in retirement.
Pension advice allowance tripled to £1,500 by Treasury Three separate £500 withdrawals Julian Marr The government has confirmed plans to triple to £1,500 the amount those planning their retirement will be able to withdraw from their pension pots tax-free to pay for financial advice.