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New pensions tax guide launches to plug knowledge gap

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Written by: Paloma Kubiak
13/04/2016
A new guide has launched today to explain how to maximise the tax benefits of saving into pensions and to minimise the bill when you take an income in retirement.

The Pensions Tax guide from unbiased.co.uk and Prudential comes as research suggests UK adults miss out on £1.9bn of potential tax savings and because pensioners typically find their budget is squeezed by 30% or more in retirement.

Last year saw the introduction of pension freedoms which fundamentally changed how people can take an income in retirement. But by giving people full access to their pension pots, the reforms have created further tax hazards, unbiased.co.uk, the adviser search site, said.

The new guide explains how you can save into a pension and the tax-relief available, the limits of what you can pay in, how to build up your pension pot and how to draw a pension and the tax on your retirement income.

Unbiased.co.uk said the guide will be useful to anyone with a pension, whether they are nearing retirement or have just enrolled into their first pension scheme.

Karen Barrett, chief executive of unbiased.co.uk, said: “We have created this guide to explain how tax and pension relate to one another – how you save tax on the way in, and how you can continue to minimise it when you take the money out. It’s easy when you know how, but a great deal about pensions is counter-intuitive if you don’t have the knowledge to hand. We hope this will help to fill that gap.”

You can see the guide here.

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