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What does the Chancellors pension revolution mean for us?

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Comments

  • billozz
    billozz Posts: 178 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    can i ask a question please, i have aprox £18000 in a personal pension and i am 56 years old, do the changes mean i can draw all of that £18000 now, but i have to pay 20% tax on it or have i got it wrong?
    thanks very much
    Bill
    Smile and be happy, things can usually get worse!
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    DiggerUK wrote: »
    I said all that needed to be said on this MSE thread.

    The upshot of this budget is that the scam known as private pensions is coming to an end, and not before time. The ability to draw down all your pot if you want to is fantastic news.
    It means that alternative ways of saving for retirement will now have be looked at.

    For me however, the greatest joy is knowing that the usual suspects scams are ending. Yaaaaaaaayy :D
    ..._

    what a complete load of rubbish as usual. This makes pensions a BETTER idea as they will be more flexible.
  • lvader
    lvader Posts: 2,579 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    atush wrote: »
    what a complete load of rubbish as usual. This makes pensions a BETTER idea as they will be more flexible.

    I think he is agreeing with you!
  • DiggerUK
    DiggerUK Posts: 4,992 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 19 March 2014 at 10:34PM
    billozz wrote: »
    ....... do the changes mean i can draw all of that £18000 now...Bill
    No. It has to be voted on by MP's first.

    Edit: sorry, I read that as 180k.
    ..._
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    billozz wrote: »
    can i ask a question please, i have aprox £18000 in a personal pension and i am 56 years old, do the changes mean i can draw all of that £18000 now, but i have to pay 20% tax on it or have i got it wrong?
    thanks very much
    Bill

    Current rules as of today, are that you can have the entire 18K pension at age 60. But only if this is your only 18K

    as you are only 56, you'll have to wait until next year.

    And you need to ask yourself, will you ever be able to afford to stop working?
  • DiggerUK
    DiggerUK Posts: 4,992 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    atush wrote: »
    what a complete load of rubbish as usual. This makes pensions a BETTER idea as they will be more flexible.
    No, with the proposed changes from ISA's to NISA's it makes them a better vehicle. With the added advantage that you have total control of your savings and don't have to wait till 55, 57, or 157 to get your hands on your capital.
    ..._
  • lvader
    lvader Posts: 2,579 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    lvader wrote: »
    I think he is agreeing with you!

    I take that back.
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Yes, you do have to wait til 55 (and 57 if you are yonnger than 41 now)
    I think he is agreeing with you!

    No he is saying you can take the money out and put it in gold?
  • lvader
    lvader Posts: 2,579 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    DiggerUK wrote: »
    No, with the proposed changes from ISA's to NISA's it makes them a better vehicle. With the added advantage that you have total control of your savings and don't have to wait till 55, 57, or 157 to get your hands on your capital.
    ..._

    My wife pays no income tax, she can pay into a pension, automatically get an extra 25% and withdraw the money pretty quickly during retirement and not pay any income tax on it. Basically 25% extra money for free.
  • billozz
    billozz Posts: 178 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    atush wrote: »
    Current rules as of today, are that you can have the entire 18K pension at age 60. But only if this is your only 18K

    as you are only 56, you'll have to wait until next year.

    And you need to ask yourself, will you ever be able to afford to stop working?
    sorry i dont understand you say i can draw the entire ammount when im 60 but then say " as you are 56 you will have to wait until next year" ?
    Smile and be happy, things can usually get worse!
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