From the 6th April 2015 the new pension rules come into effect. The new rules will provide pension investors over the age of 55 unfettered access to their pension pots.

So before we all rush out and buy our dream car or book a holiday of a lifetime we need to remember that for most of us our pension pot is there to provide an income for the rest of our life.

With life expectancy increasing year on year today’s retirees could have 30 years or more of retirement ahead which makes taking benefits from a pension pot such a huge decision. 

Investors will still be able to convert their pension into a secure income for life (an annuity), or draw directly from the fund and keep the pension invested (drawdown). They will usually be able to take up to the first 25% of the pension fund as a tax-free lump sum.

Before 6th April most people drawing an income directly from their pensions were restricted by the government on the amount of income they could take from their pension pot each year.

The crucial difference under the new rules is there is now no limit on how much can be withdrawn so people have access to their entire pension pot.

The new rules will also change the landscape for annuities and new types of annuities are likely to be introduced providing greater flexibility for pensioners.

There are also significant new tax breaks which allow pensions to be passed on down the family tree after death.

We believe that independent financial planning advice is now even more important than ever for investors so if you are saving for retirement or considering taking benefits from your pensions we recommend speaking to an independent financial adviser. You can search for a local adviser using