Changes to the present pension tax rules will allow over 60s to cash in up to two pension pots as a lump sum.

• Changes apply from April 2012.
• Pension pots of up to £2,000 in value can be considered for this treatment.
• HMRC will allow 25% to be taken free of tax. The balance will be taxed at individual’s marginal income tax rate.
• Only two pension pots can be considered.