Catherine Lay checks the value of her pension every day to work out how much she will get as her tax-free lump sum.
Lay, a retired IT worker, is yet to tap into her pension pot. Since retiring in 2019, she has lived off her savings and the rental income from a two-bedroom flat that she bought with inheritance from her father.
The 25 per cent tax-free lump sum from her pension pot, available to most savers when they turn 55 (rising to 57 from 2027), is a crucial part of the plan for the rest of her retirement.
Confirmed and rumoured changes to pension and tax rules have made it tricky for Catherine Lay to plan
“I’m hoping to take some of my tax-free cash and use the other part of my pension to buy an annuity that gives me £1,000 a month, so that my income stays under the personal allowance,” said Lay, 59, from Berkshire.
