Government mulls multiple use of pension advice allowance

£500 of pension savings tax-free to fund advice

Carmen Reichman
clock • 4 min read

The government is considering allowing people multiple uses of a £500 tax-free retirement advice allowance so they can seek advice at different points in their lives.

In a consultation out on 30 August, the government said it wanted people to be able to withdraw money from their pension pots to pay for regulated advice more than once but that each withdrawal would be limited to £500. Recognising some would benefit from the measure more than others, it proposed limiting the amount of times consumers can access the tax-free cash. It said: "The government is considering permitting savers to use the allowance more than once. This would allow people to take advice at different stages of retirement. "There is a trade-off to be made. Allowing multiple ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

'Persistent' pensions gender gap to become more 'acute', MPs told

'Persistent' pensions gender gap to become more 'acute', MPs told

Industry says issues are becoming more ‘acute’ for younger generations

Martin Richmond
clock 23 January 2025 • 5 min read
Financial heavyweights join forces against chancellor's IHT/pension plans

Financial heavyweights join forces against chancellor's IHT/pension plans

AJ Bell, Quilter, Hargreaves Lansdown and Interactive Investor CEOs send joint letter

Jenna Brown
clock 22 January 2025 • 2 min read
Campaigners claim victory as HMRC overhauls pension withdrawal tax system

Campaigners claim victory as HMRC overhauls pension withdrawal tax system

Pensioners over-taxed by £1.3bn since 2015

Jenna Brown
clock 22 January 2025 • 4 min read