Cash point

Daily Mirror - - CITYDESK - WITH TRI­CIA PHILLIPS

Peo­ple tak­ing ad­van­tage of the pen­sion free­doms and dip­ping into sav­ings pots aren’t blow­ing the cash on fast cars as was feared.

But many are get­ting caught out by not fully un­der­stand­ing the op­tions avail­able and how they will af­fect their fi­nances for the rest of their lives, ac­cord­ing to re­search by na­tional char­ity Ci­ti­zens Ad­vice.

Al­most one in 10 got hit with pay­ing more tax than they ex­pected, ris­ing to one in three among peo­ple who took their whole pot in one go.

One in 20 ended up los­ing money as they didn’t re­alise all means-tested ben­e­fits can be af­fected by hav­ing a lump sum, in­clud­ing Hous­ing Ben­e­fit and Pen­sion Credit.

Mean­while, three in 10 sim­ply put cash into a bank ac­count which, in the cur­rent low in­ter­est rates cli­mate, could mean it’s lan­guish­ing and de­clin­ing in real value due to in­fla­tion.

If you’re con­sid­er­ing ac­cess­ing pen­sion sav­ings, use your free Pen­sion Wise ses­sion to help you get to grips with your op­tions.

Call 0800 138 8292 or visit your lo­cal Ci­ti­zens Ad­vice to book a ses­sion.

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