The Chancellor, George Osborne made clear that this year’s Budget was for “makers, doers and savers”, emphasising that the economic recovery was happening faster than anticipated. There were some key changes affecting both pensions and savings, and this month, we will expand on these.
Immediate Pension Changes
The Chancellor announced that restrictions on pensioners’ access to their pension pots will be removed, meaning they will not have to buy an annuity. The total pension saving which can be taken as a lump sum will be doubled to £30,000, while the taxable part of a pension pot taken as cash on retirement will be charged at the normal income tax rate, rather than 55 per cent. The changes cover four broad areas:
Pensions – changes to come
The Government plans to bring in even greater changes from April 2015. In effect, an individual will be able to choose what they want to do with their defined contribution pension fund.
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