The number of people accessing their pension pots from the age of 55 rose slightly at the end of the year.
Since April 2015, savers have been able to cash in all, or part, of their pension fund. In doing so, they pay no tax on the first 25% of these funds, but pay the marginal rate of tax on the balance.
There were 393,000 withdrawals made by 162,000 people in the final three months of 2016, a slight rise in both categories compared with the previous three months, according to HM Revenue and Customs.
Only a fraction of these people sought free advice from the Pensions Advisory Service before doing so.
We believe that it is extremely important for clients to seek advice before taking money out of their pension plans
If you would like more information on end of year tax planning opportunities centred on your personal circumstances, please contact us >>