What does the Chancellors pension revolution mean for us?

SailorSam

Leo83 wrote: »

Think of the benefits to the government by adopting such a scheme Income tax receipts will rocket.

But will the income tax receipts rocket ?
I've got two small pensions, about £19k. So when i start to claim my state pension i'll be able to cash-in some of this private pot spread over a few years and still stay under the threshold before i have to start paying income tax.
Have i got that right ?

Pacamack

Can anyone tell me if the LTA or any other restrictions on how much you can contribute are still in place? My biggest issue with pensions at the moment is I've no idea if I'm going to have breached the cap in 25 years time.

Herbyme

Does it make anyone else wonder if this easier access will make local authorities eye up pension pots when assessing how much people must pay towards care in old age?

Proxy

SailorSam wrote: »

But will the income tax receipts rocket ?
I've got two small pensions, about £19k. So when i start to claim my state pension i'll be able to cash-in some of this private pot spread over a few years and still stay under the threshold before i have to start paying income tax.
Have i got that right ?

Exactly. You can avoid income tax altogether in that situation. Although to be fair in your case you would have avoided income tax anyway, unless you're still working.

For larger pots, Georgie has essentially cashed in future tax earnings in favour of short term gain - £1bn per year for the next few years according to his own figures.

taktikback

So anyone on salary sacrifice and a group personal pension (like me) who can have multiple plans (i'e cash up after 55 and start another one without actually retiring), could bung in a large chunk of salary and get 32% relief including national insurance, and use the proceeds of an existing pension to fund the missing salary but only pay 20%tax (having liberated 25% of it tax free..)

Yes it's a long sentence...but surely they're not going to let me get away with that?...

cepheus

I think we said this earlier! Crazy budget in the context of the borrowing mentality which has pervaded our culture.

Martin Lewis ‏@MartinSLewis 27m

The more i read on annuity changes the more Im worrying - people will tend to withdraw too much too early #budget2014

bigadaj

Does anyone know what will happen to a pension or more correctly a drawdown pot on death now. It would have been subject to a 55% tax charge but presumably now this will drop to no more than 40%?

lvader

cepheus wrote: »

I think we said this earlier! Crazy budget in the context of the borrowing mentality which has pervaded our culture.

At least it should encourage people to save in a pension in the first place. How many have people have avoided pensions and saved in ISA's instead purely because of the access issue?

samtastic7

I have a small private pension less that 15k do I have to wait till 55 or can I cash it now
TIA
Never understood the damn things

Proxy

samtastic7 wrote: »

I have a small private pension less that 15k do I have to wait till 55 or can I cash it now
TIA
Never understood the damn things

You have to wait.