Beware new limit on pension saving

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Controversial new rules will restrict the amount people can pay into their pension after they have started taking withdrawals.

Over-55s who are already taking taxable money from their pension can now put only £4,000 a year back in, down from £10,000 last year.

The change will affect around 3 pc of over-55s, and is aimed at preventing people receiving a double tax break by withdrawing cash from their pension and then putting the same cash back in tax-free, for a second time.

However, it is likely to hit many pensioners who keep working, and want to pay their salary back into their pension pot.

 

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This article was written by Louise Eccles from Money Mail (Daily Mail) and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

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