Spend your pension pot wisely
There was an almighty hoo-ha when George Osborne introduced pension freedoms. In the biggest change to pensions in a generation, anyone aged 55 and over is now allowed to take their entire pension pot as a lump sum, paying no tax on the first 25 per cent and the rest taxed as if it were a salary at their income tax rate. I was among the naysayers and one of those who thought the then Chancellor was absolutely bananas for implementing the new rules. The temptation to blow the lot on a round-the-world cruise or a fancy car must be overwhelming, and falling back on the State in later years