Pension Changes

The Chancellor announced some radical changes to Pension regulation in his March budget.  Should you be taking advantage of these?

Changes now in effect –

  • Income Drawdown max annual withdrawal increased from 120% to 150% GAD.
  • Trivial commutation limit increased from £18,000 to £30,000.
  • Small individual pensions that can be taken as a lump sum increased from £2,000 to £10,000.

Proposed changes coming into effect April 2015 –

  • Requirement to buy an annuity removed
  • However annuities are still available
  • Everyone can now take 25% tax free lump sum and withdraw remaining pot as and when required subject to your marginal tax rate
  • Flexible drawdown minimum reduced from £20,000 to £12,000

If you think any of this may apply to you contact us for more details.

 

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