How to Retire in Style returns to newsstands

Retire in style magazine fan

The third issue of How to Retire in Style is now on sale from all leading newsagents.

Produced by the team behind Moneywise, How to Retire in Style aims to help people make the most of the pension freedoms that were introduced in April, which allow savers to do what they like with their pension fund.

Six months on retirees are taking full advantage of the new rules, however, there are major concerns that a lack of education means many savers aren’t making the right choices for them.

Research from Royal London has revealed that while 16% of savers who cash in pensions are doing so to repay debts, a worrying 55% are simply putting the money into an alternative investment vehicle or cash savings account.

Not only will these savers see the taxman take a significant slice of their savings – with only the first 25% paid tax-free – but they also stand to lose the tax protection provided by the pension wrapper. In addition to tax-free growth, on death money held within a pension is paid free of inheritance tax and, if the saver dies before turning, 75, there is no requirement for any beneficiaries to pay income tax on the money.

Moreover, if money is moved into a savings account paying rock-bottom interest rates savers also miss out on the greater growth potential offered by pensions.

Rachel Lacey, editor of How to Retire in Style, said: “It’s understandable that retirees want to get their hands on the savings they have worked so hard to build, but this money needs to last a lifetime and so it’s important retirees don’t make any hasty decisions. One wrong foot could land you a hefty tax bill.”

“Sadly there is no one size fits all solution. What works for you will depend on your age, state of health, lifestyle, attitude to risk and the size of your pension.”

“How to Retire in Styles explains the options in plain English to help you make the right decision.”

How to Retire in Style is available from all leading newsagents for £4.99 or you can order your issue online today.

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