During the pandemic, many savers have dipped into their pensions without realising that this can trigger tax rules which mean that future pension contributions will be capped.

Taking a taxable withdrawal from a pension triggers a cap that limits future contributions – including employer contributions - to just £4,000 each tax year. This could be an issue if you are still working, as you risk missing out on contributions from your employer as well as on valuable tax relief.

York Press:

• 2020 figures from the FCA also show that nearly 60% of full pension withdrawals of £50,000 or more are taken without financial advice.

Don’t get caught in the trap!

• Understand the most tax efficient ways of putting money into, and taking money out of, your pensions and other investments

• Avoid costly, ill-informed decisions

York Press:

NFU Mutual Vale of York Agency can offer a Financial Review with one of our experts to prevent you getting caught in the trap. More information can be found on our website.

Remember that the tax treatment of pensions depends on individual circumstances and may change in the future. The value of your investments and any income from them can go down and you may get back less than invested.

NFU Mutual Financial Advisers advise on NFU Mutual products and selected products from specialist providers. They’ll explain the advice services and the charges. Financial advice is provided by NFU Mutual Select Investments Ltd.

P D A Palmer, J J P Dawson & M R Cliff is an appointed representative of The National Farmers Union Mutual Insurance Society Limited (No. 111982). And an introducer to NFU Mutual Select Investments Limited, a member of the NFU Mutual group of companies.

To book a no obligation meeting with one of our Financial Advisors call Clare now on 01904 451199.