By Tanya Jefferies for Thisismoney.co.uk

Published: 02:19 EST, 26 February 2015 | Updated: 03:57 EST, 26 February 2015

29 shares

11

View comments

A leading financial adviser has put wealthy individuals on alert that they can hang onto an important tax perk after pension freedom reforms - if they act now.

Wealthy pension savers should consider setting up a 'capped drawdown' plan ahead of freedom reforms in April to keep the tax benefits of paying up to 40,000 a year into their fund, he suggests.

Pension freedom reforms mean all over-55s will be able to access their full retirement savings and have the power to invest and withdraw money as they wish.

Pension freedom: All over-55s will be able to access their full retirement savings and have the power to invest and withdraw money as they wish

The drawback for the better off is that immediately you take advantage of flexible drawdown under the new rules, limits are placed on how much money you can then contribute to your pension pot and still automatically get tax relief.

More here:

Pension freedom tax tip for the wealthy: Start capped drawdown NOW