New figures from HMRC[1] show 347,000 people withdrew from their pensions throughout July, August and September 2020. This is a 6% increase on the same figures from last year, and a 2% rise compared to the previous three months, which is not the usual seasonal pattern.
Given the many recent redundancies announced, it is inevitable that as coronavirus continues, more redundancies are likely.
The finances of many are being impacted by COVID-19, especially those who are unfortunately facing redundancy and are approaching retirement.
WEALTH at work provides ideas on how to manage your finances should you find yourself facing a reduced income through redundancy or a change in your salary.
There is no doubt that COVID-19 has impacted the financial lives of many people, especially those planning to retire or those who find themselves facing an unplanned early retirement.
The ban on contingent charging for defined benefit (DB) pension transfers, where financial advisers only get paid if a transfer goes ahead, takes effect from 1 October 2020.
The Government’s Coronavirus Job Retention Scheme ends on 31 October 2020 in which a third of the UK workforce were furloughed.
With many household incomes under pressure following the impact of coronavirus, it may be tempting for those aged over 55 to consider withdrawing from their pension early.
There are many advantages to choosing to use income drawdown to access your pension, one of the main ones is being able to access your assets in the most tax efficient manner.
The impact COVID-19 has had on pension savings and the fact that many household incomes are under extreme pressure means individuals are now at greater risk of falling for a scam.