A Burnham-On-Sea wealth management firm has issued a warning to local people following a surge of interest in pensions withdrawals.
Watermark Wealth Management has spoken out about the government’s new pension freedom rules.
As of the 6th April, individuals aged 55 or over were given greater flexibility to access their pension savings, meaning they can now have the freedom to withdraw their pension, with some of it being tax-free cash.
They are urging people to seek advice, or run the risk of incurring unnecessary tax charges, because there are many different options that can be taken when it comes to withdrawing pension funds.
Tony Thompson, a senior pension specialist at Watermark, pictured, added: “We have already seen an increase in the number of enquiries with people wanting to withdraw a large part of their pension fund.”
“However, when we have explained the tax consequences of doing so they invariably change their mind. It is vitally important that people seek professional independent financial advice to avoid serious unintended tax consequences, whether that be through Watermark or one of the other well qualified firms in the town; just take advice!”
Watermark is offering a free of charge first meeting with an adviser regarding pension withdrawal options.
