Millions at risk of losing money in retirement
Savers could potentially lose out on significant amounts of money in retirement income by taking tax-free cash from their pensions. The introduction of new pension rules in 2015 allowed savers to take a 25% tax-free lump sum from their pensions, but many are unknowingly putting their retirement funds at risk.
Record numbers reaching retirement age
Experts warn that a growing number of people in Defined Benefit pension schemes are reaching retirement age, with thousands at risk of losing cash. Data shows that almost a third of eligible savers took a tax-free lump sum from their pensions last year, leading to concerns about the long-term impact on retirement income.
Understanding the risks
Defined Benefit pension schemes, which offer a guaranteed income for life, are seeing a rise in the number of active pensioners. However, taking a lump sum from these schemes can result in reduced income for the rest of one's life. Experts emphasize the importance of carefully considering the implications of withdrawing cash from pension schemes.
Real-life impact
Linda Southall's story serves as a cautionary tale for pensioners. By taking a tax-free lump sum from her Civil Service pension scheme, she unknowingly sacrificed thousands of pounds in retirement income. Understanding the long-term consequences of such decisions is crucial to safeguarding one's financial future.
Government rules and hidden fees
Parents are facing new fees from nurseries despite Government rules against charging for access to free childcare. Some nurseries are introducing compulsory fees, raising concerns about compliance with regulations. Understanding your rights and the fine print is essential to avoid unexpected costs.
Student loan interest on the rise
A record amount of interest has been added to student loan balances, with millions of graduates facing increasing debt due to high interest rates. The Government's decision to raise interest rates has significant implications for borrowers, highlighting the challenges of managing student loan repayments.
