Back to the library

Pension Freedom - Case study

Case Study Pension Freedom

Panoramic  Wealth Management had acted on our client’s behalf in respect to their pension plans. Having reached 60 years of age our client was looking to release some tax free cash from his pension under the new Pension Freedom rules, to assist with a purchase of an overseas holiday home with his wife. 

The client had numerous pension plans of differing values, several of which of did not accommodate the new Pension Freedoms. Therefore it was necessary to arrange for all policies to be transferred into a single plan to enable him to utilise Pension Freedoms. This required liaising on behalf of the client with the various insurance companies and providers.

The client wished to take the maximum tax free lump sum (25% of total funds), with remaining or residue funds being left invested in a pension to supplement his income as and when needed.
Naturally we advised him that any funds taken over the allowable tax free rate would incur income tax at the marginal rate.

At this stage the client did not wish to purchase an annuity as he did not wish to receive any further regular income. As part of the Pension Freedoms he was very much in favour of the funds being passed, in full, to a spouse should anything to happen to him.

He was also made aware that whilst it would be possible under Pension Freedom rules to take all the residue fund as a single amount – this would NOT be tax efficient. This was mainly due to the fact that he was still running his own company and receiving an income.

We are anticipating that he will move gradually into retirement and will be able to use the pension fund to assist him with the transition.

To learn more about how Panoramic Wealth Management can help you complete your Pension Freedom journey contact us now on 01892 559 555.