What does the Chancellors pension revolution mean for us?

Conrad

Savers with pension pots of less than £30,000 can now take this out as cash, in what is a welcome lifeline for savers with small pension pots.

http://www.telegraph.co.uk/finance/budget/10707261/Budget-2014-live.html


But at what age, anyone know for sure? I ask because I have a smallish pot I wouldn't mind re-investing in B2L because I get an immediate high yield based on a £120k property, by only inputting 25% from my own capital.

atush

wotsthat wrote: »

Personally I find it quite hard to believe that there are significant numbers of people who, despite having debt problems and/ or gambling addictions, took the time and effort to build worthwhile pension pots first.

They may well do with auto enrollment?

Slinky

atush wrote: »

They may well do with auto enrollment?

I fear anybody relying on the piddly small percentages involved with auto enrollment pensions will be sadly disappointed if they think this is going to provide them with a decent pot.

2014

Has there been any more incentive to defer state pensions ?
or do the same rules apply ?

atush

Slinky wrote: »

I fear anybody relying on the piddly small percentages involved with auto enrollment pensions will be sadly disappointed if they think this is going to provide them with a decent pot.

That was always the case. But instead of an extra 50 quid a month, this lot may blow it all in the 6 months after retirement?

Besides, once auto E is fully rolled out, the % go up

cepheus

getmore4less wrote: »

What happens now if you have £100k in the bank, blow it all and ask for benifits.

Just add the pension money to the capital for deliberate deprivation of assets.

Might also means pension pots can be raided to pay for care.

Indeed it seems like a short term measure to boost the economy, which could create an enormous bill later. In fact it's quite crafty because the less financially savvy will just take it out and pay the tax. The point of pensions is to try and force people to spread out their savings for retirement in a responsible way rather than blow it all at once.

Still unclear what happens to the 25% tax free lump sum element, is that retained or scrapped?

Presumably final salary schemes are unaffected as well.

atush

2014 wrote: »

Has there been any more incentive to defer state pensions ?
or do the same rules apply ?

I think that will change when t he flat rate comes in, in 2016?

atush

cepheus wrote: »

Indeed it seems like a short term measure to boost the economy, which could create an enormous bill later.

Still unclear what happens to the 25% tax free lump sum element, is that retained or scrapped?

Presumably final salary schemes are unaffected as well.

Pretty sure it remains 25% TF, and the rest taxed at your normal rate. Or higher rate if you take it all?

coastline

Conrad wrote: »

Savers with pension pots of less than £30,000 can now take this out as cash, in what is a welcome lifeline for savers with small pension pots.

http://www.telegraph.co.uk/finance/budget/10707261/Budget-2014-live.html


But at what age, anyone know for sure? I ask because I have a smallish pot I wouldn't mind re-investing in B2L because I get an immediate high yield based on a £120k property, by only inputting 25% from my own capital.

this might help..

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/293743/budget_2014_greater_choice_in_pensions_explained.pdf

SallyG

I can't believe there won't be a watertight prohibition on throwing yourself on the mercy of the State when you've spent your pension.
There's euphoria now after such long repression - like Christmas Day in the Workhouse - but we haven't seen the draft legislation yet - too much ointment not to have lots of flies.