MSE News: Budget 2014: Radical reforms to give greater access to pensions savings

zaksmum

My fiend has just had her pension options a week ago but not yet made a decision.

Pension pot is under 18K - could she now take it all in a lump sum?

She has no other pension, will be 55 soon and lives alone with no savings.

Zelazny

zaksmum wrote: »

My fiend has just had her pension options a week ago but not yet made a decision.

Pension pot is under 18K - could she now take it all in a lump sum?

She has no other pension, will be 55 soon and lives alone with no savings.

You have to be 60 to take trivial commutation.

atush

She might be able to April 2015 though?

Can she carry on another year?

lvader

Truthseeker wrote: »

At a steep price.

For my wife the cost is negative, she will get extra money for doing this.

zaksmum

Zelazny wrote: »

You have to be 60 to take trivial commutation.

I thought that had changed with yesterday's budget?

armour

I think this is the best budget news ever.
Why do some people think it's NOT OK for people to have full access to their pension savings.
Annuity rates have been a scandal for far too long!

penrhyn

You plebs don't have the intelligence to be trusted with your own money, thats why we in the Liebour Party will take as much off you as possible.
We will take control of your money.
We will distribute it to the who will vote to keep us in power.

jayson043

What is my marginal tax rate if I don't have any income and am just living off my savings? I won't pay any tax so is my marginal tax rate zero?

If my pension pot at 57 years is 1 million, then its a very different situation if I can access that 1 million minus my (zero?) marginal tax rate vs getting £20K income pa for life.

With the knowledge that in 5 years I could get my hands on £1 million I would quit work at the age of 52, live of my savings for 5 years and quiet happily become unproductive, maybe get a hobby job.

btw I am 34, and shockingly in total I put 27% (inc 12% employer) of my earnings into a pension, so the 1 million pension pot is possible.

lvader

Money withdrawn from a pension is income so you pay income tax on that. You can withdraw up to 10.5k a year tax free (personal allowance) assuming no other income.

Proxy

zaksmum wrote: »

I thought that had changed with yesterday's budget?

It hasn't.

Not until next year.

Increase limits until then, but the age restriction remains.