12. How Pensions Work
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12. How Pensions Work
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In this episode we first cover the difference between defined contribution and defined benefit pensions and then we look out the the principles of a defined contribution pension such as a workplace pension or a self-invested personal pension (SIPP) .
We discuss how to take advantage of the 25% tax-free portion and explain the difference between flexi-access drawdown (FAD) and uncrystallised funds pension lump sums (UFPLS) and how to use these to access your pension assets.
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