Until now, successive governments had refused to deal with the unfairness of a regime of pension regulation which had resulted in many people having to settle for significantly reduced returns on their savings at retirement. The Budget of 2014 seeks to change all that.
Greater access to pension investment
Before the Budget changes, it was calculated that more than 100,000 pension savers retiring this year could lose out on £210 million from uncompetitive rates offered to holders of small retirement pots.Now,effective 27th March this year, small pots can now be cashed-in up to a value of £10,000,also the number of such pots held has been raised from two to three.
There are changes to the provisions relating to drawdown of your pension, both capped and flexible,increasing the amount of you can take out of these arrangements.
You can read here more about how this and other pension changes in the Budget may affect you.
400,000 people will have greater flexibility over their savings.From next year, 320,000 retirees with defined contribution pensions will benefit from greater choice over these plans.
Obtain good professional financial advice
In making the right decisions for you- an annuity may still be the best option for many – obtaining good financial advice is essential. The government has promised to help you obtain the guidance you need.