Pension changes

None of us has a crystal ball but should pension changes ( e.g removal if TFLS etc) be announced in October budget, what timeframe will be implemented?  Will changes be immediate or from start of next tax year Aoril  2025 ?
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  • tacpot12
    tacpot12 Posts: 9,153 Forumite
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    I think it unlikely that even simple changes will be implemented immediately. Pension providers need time to change systems and retrain staff. The start of the new tax year is the earliest I think that any changes would be implemented. 
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • MeteredOut
    MeteredOut Posts: 2,770 Forumite
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    edited 30 August 2024 at 2:19PM
    "None of us have a crystal ball but can you tell me the future please?"
  • Hattie627
    Hattie627 Posts: 282 Forumite
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    Can anyone tell me if there would require to be protection given for pension pots already saved? Surely they couldn't change the rules retrospectively for these pension savings? 
  • Sahara20
    Sahara20 Posts: 24 Forumite
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    Maybe I should have phrased it better. Previously (earlier government's) when there have been pension changes, did the change happen immediately or wait until the next tax year?
  • MeteredOut
    MeteredOut Posts: 2,770 Forumite
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    Hattie627 said:
    Can anyone tell me if there would require to be protection given for pension pots already saved? Surely they couldn't change the rules retrospectively for these pension savings? 
    No, no-one here can tell you that.

    Many will have opinions, much of which will be informed, but It depends what you mean by "protection"
  • MallyGirl
    MallyGirl Posts: 7,147 Senior Ambassador
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    Sahara20 said:
    Maybe I should have phrased it better. Previously (earlier government's) when there have been pension changes, did the change happen immediately or wait until the next tax year?
    It would totally depend on the change.
    I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
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  • dunstonh
    dunstonh Posts: 119,152 Forumite
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    None of us has a crystal ball but should pension changes ( e.g removal if TFLS etc) be announced in October budget, what timeframe will be implemented?
    Why would Labour remove PCLS when they have stated twice from different sources that they are not and when they have said there will be a review carried out into pensions which will involve consultation periods?

    Will changes be immediate or from start of next tax year Aoril  2025 ?
    Anything can happen at any period.     So, if you are going to act on wild speculation then you need to consider that anything is possible.


    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Hattie627
    Hattie627 Posts: 282 Forumite
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    Hattie627 said:
    Can anyone tell me if there would require to be protection given for pension pots already saved? Surely they couldn't change the rules retrospectively for these pension savings? 
    No, no-one here can tell you that.

    Many will have opinions, much of which will be informed, but It depends what you mean by "protection"
    I'd welcome any reasonably informed opinion then. Sorry if my question displays naivete. Obviously we are in the realms of speculation but there is a lot of that going on at the moment in the press (eg Telegraph) with very little explanation of the reasonable possibilities to the uninformed. Sorry if worrying about my retirement plans planned over many years (as we are encouraged to do) is the wrong thing to do but I can't help it.

    Protection used in a general sense, something analogous to protecting pension pots already saved when the LTA was lowered. I know that the detail will be important.
  • MeteredOut
    MeteredOut Posts: 2,770 Forumite
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    edited 30 August 2024 at 3:08PM
    Hattie627 said:
    Hattie627 said:
    Can anyone tell me if there would require to be protection given for pension pots already saved? Surely they couldn't change the rules retrospectively for these pension savings? 
    No, no-one here can tell you that.

    Many will have opinions, much of which will be informed, but It depends what you mean by "protection"
    I'd welcome any reasonably informed opinion then. Sorry if my question displays naivete. Obviously we are in the realms of speculation but there is a lot of that going on at the moment in the press (eg Telegraph) with very little explanation of the reasonable possibilities to the uninformed. Sorry if worrying about my retirement plans planned over many years (as we are encouraged to do) is the wrong thing to do but I can't help it.

    Protection used in a general sense, something analogous to protecting pension pots already saved when the LTA was lowered. I know that the detail will be important.
    I suspect its fairly safe to say that no-one is going to take money from your existing pot in any way. What could change is the tax treatment applied when funds are added to the pot (tax relief), funds are withdrawn from the pot, or when the pot becomes part of your estate for inheritance purposes.

    No-one can say whether any changes would apply immediately from the date of announcement or from a specific date in the future - the complexity of any change and the ability for people to make changes in the short term to avoid the impact might both drive that decision.

    Retrospective application is unlikely (in regards to undoing what has already been done, but not in respect to pots already in existence).

    All my opinion.
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