Ok, I generally don’t agree with these guys, however in this case they are bang on the money. Simply, to ignore HM Revenue & Custom’s warnings over pensions busting schemes is to do so “at your peril”.
DeVere & Partners chief executive Nigel Green said people should be very wary of schemes offering to “unlock” up to 50% of an individual’s pension.
He went on to say:
We have long been warning against these ‘pension-busting’ schemes which offer investors the possibility of taking enormous, tax-free sums before retirement.
The charges on unauthorised payments can easily escalate to a shocking 70%, meaning there will be very little, if anything, left in your pension pot when you come to retire. Investors should steer clear of schemes which promote withdrawing vast sums of capital out of their pensions before they reach the age of 55.
If you are tempted by schemes that allow you to unlock more of your pension scheme than intended, remember the old adage – if something looks to good to be true, it probably is.