1) You put money into your pension to help financially in retirement. If you draw that cash and in doing so you become liable to huge taxation on it. That was the Chancellors main reason for changing the rules, he wants your pensions to stimulate the economy and get lots of tax in the process. He is not Cinderella he is the tax man who lives in number 11 Downing Street. You have already paid tax on your earnings, if you withdraw large sums of cash you get taxed again and when you go out and buy your new car or whatever you crave you will pay VAT. Lots of tax for the chancellor. As I said he aint Cinders.
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