Important Pension info for people approaching their 75th birthday or aged 75 years and over
This information is very important for people aged 75 or over who have unclaimed pension funds.
The Government introduced legislation in the Finance Act 2016 imposing severe tax penalties on unmatured pension funds for people who are aged 75 or older.
It is important that anybody in this situation takes immediate action by contacting their adviser or provider to mature the fund.
How will you know what an unmatured pension fund is?
They will be known as PRSAs, RACs or Personal Pensions. The 25% tax free lump sum has not yet been claimed.
Matured Pension funds are usually known as Annuities or Approved Retirement Funds. The 25% tax free lump sum has usally been paid.
Unclaimed pension funds held by people aged 75 or over will be subject to tax at 40%, and will thereafter be locked down and remain unaccessible.
What do PRSA and Personal Pension clients approaching age 75 or over age 75 need to do?