The Low Incomes Tax Reform Group (LITRG) has shared a warning to investors that taking money out of pensions (the current squeeze on people’s incomes might lead some people to consider doing this) should be carefully considered, as hasty decisions could lead to costly mistakes.
Their press release flags up that, while tax relief is usually given on money saved into pensions and investment growth is tax free, tax will likely have to be paid when money is taken out. Some of the knock-on effects can be unexpected and, without careful planning, can leave people with less money than anticipated.
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