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Pensions Advice Allowance – Consultation Launched

The Pensions Advice Allowance, which will come into force from April 2017, will allow people nearing retirement to take up to £500 out of their pension pots tax-free to put towards the cost of financial advice.

This means that an individual can receive advice on all the financial products that contribute towards their retirement income, such as multiple pension pots and other assets like ISA savings.

Research has found that when approaching retirement only 22% of people know the value of their pension pot and only 14% of people would be confident planning their retirement goals without financial advice. The government has launched a public consultation on the allowance which seeks views on specific details including the eligibility age and how best to promote awareness of the allowance

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