LONDON--(BUSINESS WIRE)--The UK tax authority is estimating that 130,000 retirees a year will take cash out of their pension pot under new flexibility rules. Simon Morris (http://www.simonmorrisuk.com/), Property Advisor, launches a guide to property investment (http://www.simonmorrisuk.com/guides/) to outline retiree’s safe investment options in choosing a property-based financial product.
With the rules on how people use their pension pots relaxing a policy impact document (https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/340915/Annex_B_Flexibility_15_TIIN_Final.pdf), now published, HM Revenue and Customs said a third would use the option. The first 25% of the pot is tax-free with the remaining subject to income tax.
Paul Green, from Saga, said the organisation had asked 2,400 people aged over 50 about the new rules:"Over half say they plan to use funds to secure a future income for their retirement”.
Simon Morris comments: “Withdrawing up to 25% tax free could mean that from April the UK over 55’s will be actively hunting down funds and bonds that offer the highest return for relatively low risk”.
He adds, “Property Investment Bonds are an attractive option currently for smart investors with capital available.
"But investment needs to be made wisely. Choose a product that has the initial capital guaranteed and always choose a product that is regulated”.
In his recent Guide to Property Investment (http://www.simonmorrisuk.com/guides/), Simon outlines practical steps and checks that investors can make prior to committing any of their hard-earned capital.
Simon Morris is an independent property advisor working with Funds and Investment Companies to ensure property chosen for funds and portfolios delivers agreed return based on low risk.
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