Tax free cash from pension pot. (?)

warwicktiger

I appreciate much fine print still has to be read from the budget, but I do not recall any mention of the existing TFC allowances. If retirees wish will they still be able to have 25% free of tax and buy an annuity or drawdown the rest?

Linton

That would seem to be the case. There is nothing in the consultation document for 2015 to suggest otherwise. The worked examples in that document explicitly take account of the 25% TFLS.

Drawdown is an interesting matter in that it is currently a niche product for experienced investors. The governments plans may make it the norm. Presumably products will be required to make it usable by those with no understanding of investment.