Should I withdraw all my tax-free cash, before Labour change the pension rules?

No. Not before you have discussed this with your trusted adviser.

‘The Noise’

There has been a lot of noise about this subject over the past couple of weeks with the change in government and it must be one of the most common questions we have had.

But the question itself seems to have been stoked by the media, and those “down the pub” conversations which tend to exaggerate fears, negativity and the worst-case scenarios.

One example I have already heard is that a retired financial adviser has pulled out his own pension tax-free cash sum, which has led to several of his close friends doing the same.

But, why?

All of this points to our innate fear of the unknown, change and probably a natural distrust of politicians!  [Especially when it comes to pensions]

I don’t think the answer to the question should be a simple yes or no.

Rationale

If you have a financial plan in place, other assets, and you don't need the cash, withdrawing a lump sum from a tax-efficient account to a taxable one and adding it to your estate without a clear purpose doesn't seem to make much sense.

For most people, with a financial plan – and when considering nothing has been officially announced following the change of government – waiting to make decisions based on actual information, in my opinion, would always be the prudent approach.

Because, if we made knee-jerk decisions in reaction to every potential taxation change, global event or political upheaval staying on track would be almost impossible.

Reality

There are occasions when the fear of losing something is just too much for some people, where it causes too much worry, anxiety and even sleep loss.

If this is the case then action should be considered, because these feelings may not go away, and life is just too short to carry this unnecessary worry.

So, speak to your trusted adviser.

Make an informed decision that’s right for you, and your family and based on a financial plan.

If you want to discuss this or anything else just let us know.

That is why we are here. 😊

Time, Freedom, Peace of Mind