More than two in five (43%) over 55s are not aware they can take 25 per cent of their pension pot tax-free, new research from Standard Life, part of Phoenix Group, reveals, highlighting a lack of knowledge which could result in people making ill-informed decisions when they access their pension savings.
The majority of those approaching the age when they can begin to access their pot are similarly unaware, with 52 per cent of those aged between 50 and 54 oblivious about this rule too. Standard Life’s research also found that among the 57 per cent of over 55s that do know they can access some of their pension without paying tax, 21 per cent have done this already, while 9 per cent plan to do so in future.
Most over 55s that have taken or plan to take their tax-free lump sum did or will do so at the point of retirement (69%). In comparison, 16% have made or plan to make withdrawals at different points in retirement.
