City Trustees - part of Mattioli Woods



News and Media

04 November 2014

Pensions Perspective: can I really cash in my pension and buy a Lamborghini?

The short answer is yes. From April 2015, if you are aged over 55, you will be able to take a lump sum of 25% of your pension tax free, together with the remainder of your pension which will be taxed as earned income at your marginal rate.

Pensions Perspective: can I really cash in my pension and buy a Lamborghini?

However, prices for a new Lamborghini Aventador LP 700-4 Roadster start from £294,700 and so, even ignoring any extras required and the car insurance, you would need a pension pot of circa £520,000 to end up with about £294,700 in your hand.

As the average defined contribution pension pot in the UK only amounts to about £30,000, we expect that the Lamborghini dealerships won't be that busy!

Pension Perspective is a weekly feature from City Trustees, covering questions that our experienced sales and technical teams have received from advisers. The Q&A covers a range of subjects including property, pension contributions, protection, auto-enrolment and more.

City Trustees operates a free technical helpline for advisers for support with pension challenges. Tel: 0116 240 8731 or email: technicalhelp@citytrustees.co.uk.

 

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City Trustees is a trading name of Mattioli Woods plc. For news updates on the Group, please visit our central News & Media on the Group website.