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Pension savers to get £1,000 to spend on advice

The chancellor outlined two initiatives in the March 2016 budget that acknowledge the far-reaching pension reforms, which he originally announced in 2014. With more freedom than ever to use cash from their retirement funds, the government's thinking is that people have a greater need than ever for professional financial advice. If your employer arranges pension advice, you can will be able to claim tax relief up to £500 from April 2017. Currently the allowance is £150. Secondly, the Pensions Advice Allowance is a new initiative that enables people under the age of 55 to withdraw £500 tax free from their pension pots, again to spend on financial advice. The government will consult on this over the summer months before finalising the details, but we understand that it will allow both allowances to be used together.