SAIF Briefing Note: Pensions Changes UpdateOctober 6, 2014 // No Comments
On 21 July 2014, Chancellor George Osborne confirmed that what he described as “the most radical change to how people can access their pension in almost a century” would take effect from April 2015, with the government introducing new legislation during the autumn to deliver the reforms.
The changes, first announced in the March 2014 Budget, mean that everyone over the age of 55 with defined contribution pension savings will be able to access them as they wish, regardless of their total pension wealth, subject to their marginal tax rate from April next year. The reforms mean that from April 2015 you will be able to access your defined contribution pension savings as you wish from the point of retirement (from age 55), with no obligation to buy an annuity. Instead, you will have complete freedom to draw down as much or as little of your pension pot as you wish, anytime you wish.
SAIF Members may read the full article, written by Barry Rogers, a member of the Private Client team at UK200Group member firm Price Bailey. Simply logon to the Members’ Area, select Business Information and Templates and you’ll find the Pensions Update document. Alternatively, click here.
There is also a useful guide to pensions changes on the government’s website.