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Reasons not to use pension freedoms

Prior to 6 April, financial advisers would usually tell investors to exhaust a pension pot where possible before drawing on other assets such as money held in individual savings accounts (Isas), or taxable investment accounts.

The reason for this was the punitive death taxes on any money left in a pension. But now these death taxes have been removed from the pensions regime, pensions have become the most tax-efficient place to keep your money. So for many well-off investors who have other sources of income, the pension should be left alone as long as possible.

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