Make the most of pension freedom

New pension legislation coming into effect earlier this month on 6 April for the first time allows you to withdraw 100% of your personal pension. Dylan Mitchell looks at what you need to know, the pitfalls and opportunities, and how you could use the money in your pension to invest into real estate overseas.

House of euros smallWe have all been attracted to saving in a pension because of the attractive tax breaks offered. But the drawback has always been the inability to access all the money as a lump sum when you retire.

Until now, once you reached age 55, you would be able to withdraw 25% of your pension as a tax-free lump sum and the remaining 75% must be used to provide an income throughout your retirement. This could be done in two ways: