Archived article: This article was correct at the time of publishing. Tax, investments and pension rules can change over time so the information below may not be current.

2015 is the Year of the Pension

2015 is a big year for pensions. In April they’re breaking free from rules over how you access money on retirement, as well as unpopular features such as the 55% pension ‘death tax’.

Lee Dooley Lee Dooley
15 January 2015

But they’re retaining the good parts – you’re still given hefty tax relief on pension contributions and you won’t have Capital Gains Tax or Income Tax to pay on investment returns (except tax credits on dividends).

With this new freedom and flexibility suddenly making pensions more attractive, is it time you gave some thought to how you save for the future?

What do the pension changes mean for you?

From April 2015, savers reaching retirement will have unlimited access to their pension and complete control over how and when they take an income from it. These changes have been celebrated in the press, and it’s important to think about them now because they might just change the way you save for the future – what you do with your pension could be one of the biggest decisions of your life.

Your pension will determine your level of income and overall lifestyle in retirement. At retirement, you will be able to take an income through a combination of drawdown, an annuity and lump sum withdrawals – or you can leave your pension invested when you retire. You can also take up to 25% of your pension fund without paying any tax, but under the new rules you are not required to take your tax-free cash as a single lump sum. Instead, you could make several withdrawals totalling your 25% amount over a number of years.

We can help make the most of your pension

The increased flexibility when it comes to your pension means that now is a great opportunity to ensure that your pensions and investments are working hard for you, so you can ultimately achieve the lifestyle you want and deserve in retirement. Bestinvest spends every day talking to clients about pensions, and we have years of experience helping people make the most of their investments. During these exciting times for savers, why not let us help you too? You can download our free guide to planning for retirement here to discover more.

The Best SIPP

With Bestinvest’s Best SIPP you can take control of your pension. Readers of the FT and Investors Chronicle voted us Best Low-cost SIPP Provider for two years running, in both 2013 and 2014. You also have access to our extensive range of free research, as well as more than 2,500 funds plus investment trusts, ETFs and all UK-listed shares through our powerful investment selector.

For more information please give our friendly investment professionals a call on 020 7189 2400. Alternatively, request a call back or email us at

The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. Prevailing tax rates and reliefs are dependent on your individual circumstances and are subject to change. This article does not constitute personal advice.

If you are unsure of your options you should seek professional financial advice or visit

*SIPPs are not suitable for everyone. If you don’t want to invest across different asset classes or don’t think you will make use of the investment choices that SIPPs give you then a SIPP might not be right for you. Self-directed investors should regularly review their SIPP portfolio, or seek professional advice, to ensure that the underlying investments remain in line with their pension objectives.