What does the Chancellors pension revolution mean for us?

gadgetmind

atush wrote: »

Is Mrs Gadget as excited as you are?

Well, I did try and show her the revised spreadsheets, but TBH, I think the honest answer is "hell, no!"

gadgetmind

Hmm, TPTB seem a trifle confused, or maybe it's me.

From the Freedom and Choice PDF (yes, reading on holiday!).

"3.30 The government therefore proposes to increase the age at which an individual can take their private pension savings at the same rate as the increase in the State Pension age. It is important people have the opportunity to plan properly for this change and so the government
26 proposes to wait until 2028 (when the State Pension age will rise to 67) to fully implement this change. From 2028, people will not be able to draw their private pension benefits without a tax penalty until age 57

"3.33 It is important to recognise that the age at which you can take your pension savings under the current rules differs depending how you plan to access them. For example, if you want to buy an annuity, you are able to do so from age 55 (subject to your pension scheme rules). However, if you have total pension savings below £18,000 and want to take these savings as a lump sum you have to wait until age 60. Under the new system, people will be able to access their defined contribution savings from age 55 in all circumstances, rising to 57 in 2018."

So, 2018 or 2028? Both dates given on the same page.

lvader

Pretty sure it's 2028, or at least it better be!

atush

2028. I imagine this is one of many typos?

gadgetmind

If a somewhat sozzled Yorkshire engineer can spot these typos so quickly, then this document was definitely rushed!

[Deleted User]

The thought came to me that it is PRIVATE pensions that are being discussed and worried over by a few well meaning people. Pensions that have been accumulated by prudent people to top up any state pension they might get. I am glad that these careful people are at last being given credit for being able to manage their lives and their wealth during pension age. It is now their choice and not that of a nanny state and to that I have to raise a glass and say AT LONG LAST

:beer:

People who have `unasked for` empathy for others need to back off now and trust that people will, when pensioners, get what they deserve

Thrugelmir

wannabe_credit_free wrote: »

Annuities give a poor return.

Compared to what?

Higher return comes with increased risk. In retirement lost capital will be difficult to replace.

Freecall

gadgetmind wrote: »

get everything out in 6-7 years and thereby avoid all drawdown fees.

Just wait and see the revised fee sheet.

Closure of depleted drawdown pot ........... £XXX

Go on, call me cynical.

kidmugsy

kittie wrote: »

people will, when pensioners, get what they deserve

Oof, how cruel.

atush

kittie wrote: »

The thought came to me that it is PRIVATE pensions that are being discussed and worried over by a few well meaning people. Pensions that have been accumulated by prudent people to top up any state pension they might get. I am glad that these careful people are at last being given credit for being able to manage their lives and their wealth during pension age. It is now their choice and not that of a nanny state and to that I have to raise a glass and say AT LONG LAST

:beer:

People who have `unasked for` empathy for others need to back off now and trust that people will, when pensioners, get what they deserve

So you are volunteering to pay for them if they have to go onto benefits then? At least volunteer to pay for those on this thread?

I'll continue to encourage people to use the new free advice to make the best decision for their own LE. To make their money last the correct amount of time be that short or long. With your permission or without.