New £1.5k tax-free allowance for retirement advice

From April 2017, when planning for retirement, people will be able to withdraw up to £1,500 (tax free) from their pension pots in order to cover the cost of financial advice.

• £500 can be used a total of three times, but only once in a tax year – meaning members can, for instance, access advice when they first start saving and then again just before retirement.
• It is available to members of ‘defined contributed’ (DC) and hybrid pension schemes with a defined contribution element (not ‘defined benefit’ or final salary type pensions).

To find out more, you can read the full outcome of the Government consultation.