Radical changes proposed in yesterday’s Budget could herald the biggest shake-up to UK pensions ever. And it could happen as soon as 2015.
hese welcome proposals would give pension savers more freedom, choice and flexibility than ever before over how they access their pension savings.
If the changes go ahead, anyone of pension age would be able to draw as much (or as little) from their pension pot as they choose at any time.
25% would still be tax free. The balance would be taxed as income in the year it is taken.
The detail isn’t set in stone. But this signals a clear Government desire to give savers more control, and responsibility, over their destiny in life after work. It could represent pension utopia, but only with advice to solve an increasingly complicated retirement equation.
“This is fantastic news for consumers.”