25% Tax Free Private Pension Allowance

TotalExperience

I’m 60 this year and considering my options. 

With the new government saying there will be changes announced next month in the amount of Tax Free Pension Allowance you can take as a lump sum - whatever changes they make, do they have to give a time period before they can implement the new rules, or can it be with immediate effect. 

Ideally I would like to retire in 2 years, but depending on what they may do, and how quickly they are allowed to implement the new rules, I may decide to go now. 

Many thanks in advance. 

Dazed_and_C0nfused

TotalExperience said:

I’m 60 this year and considering my options. 

With the new government saying there will be changes announced next month in the amount of Tax Free Pension Allowance you can take as a lump sum - whatever changes they make, do they have to give a time period before they can implement the new rules, or can it be with immediate effect. 

Ideally I would like to retire in 2 years, but depending on what they may do, and how quickly they are allowed to implement the new rules, I may decide to go now. 

Many thanks in advance. 

Can you provide a link to where they have said this?

TotalExperience

Sorry - I don’t have a link - it’s just stuff I’ve heard and read about in the news. 

HappyHarry

The government haven't said that.

The only time they have mentioned tax free cash, as far as I am aware, is when they said in June that "The ability to withdraw 25 per cent of your pension as a tax-free lump sum is a permanent feature of the tax system and Labour are not planning to change this”

Speculation by the press which is then erroneously repeated on this board as factual statements needs to be discouraged.

MeteredOut

TotalExperience said:

Sorry - I don’t have a link - it’s just stuff I’ve heard and read about in the news. 

By news, do you mean social media and click-bait headlines from struggling newspapers, which is then propagated by people who say stuff like "the new government saying there will be changes announced next month" even though that was never the case?

Dazed_and_C0nfused

MeteredOut said:

TotalExperience said:

Sorry - I don’t have a link - it’s just stuff I’ve heard and read about in the news. 

By news, do you mean social media and click-bait headlines from struggling newspapers, which is then propagated by people who say stuff like "the new government saying there will be changes announced next month" even though that was never the case?

It certainly seems to have changed from the op!

With the new government saying there will be changes announced next month

HillsideRetired

lets wait and see . when we have facts we can take appropriate action . 

if Rachel did plan a pension raid , the reaction to the WFA may have given room for thought . about further pension pick pocketing 

westv

The Government want tax now, not in 10 years time. I can't see that reducing the TFLS would achieve that in sufficient volume to make it worthwhile v the bad publicity.

Albermarle

TotalExperience said:

I’m 60 this year and considering my options. 

With the new government saying there will be changes announced next month in the amount of Tax Free Pension Allowance you can take as a lump sum - whatever changes they make, do they have to give a time period before they can implement the new rules, or can it be with immediate effect. 

Ideally I would like to retire in 2 years, but depending on what they may do, and how quickly they are allowed to implement the new rules, I may decide to go now. 

Many thanks in advance. 

The advice is not to make any decisions based on media speculation, as you could well make the wrong decision.

katejo

Albermarle said:

TotalExperience said:

I’m 60 this year and considering my options. 

With the new government saying there will be changes announced next month in the amount of Tax Free Pension Allowance you can take as a lump sum - whatever changes they make, do they have to give a time period before they can implement the new rules, or can it be with immediate effect. 

Ideally I would like to retire in 2 years, but depending on what they may do, and how quickly they are allowed to implement the new rules, I may decide to go now. 

Many thanks in advance. 

The advice is not to make any decisions based on media speculation, as you could well make the wrong decision.

Only today a colleague told me that her cousin is convinced that Labour will tax the lump sum from her DB pension so she is planning to claim it early. I haven't heard anything to support this belief.

Albermarle

katejo said:

Albermarle said:

TotalExperience said:

I’m 60 this year and considering my options. 

With the new government saying there will be changes announced next month in the amount of Tax Free Pension Allowance you can take as a lump sum - whatever changes they make, do they have to give a time period before they can implement the new rules, or can it be with immediate effect. 

Ideally I would like to retire in 2 years, but depending on what they may do, and how quickly they are allowed to implement the new rules, I may decide to go now. 

Many thanks in advance. 

The advice is not to make any decisions based on media speculation, as you could well make the wrong decision.

Only today a colleague told me that her cousin is convinced that Labour will tax the lump sum from her DB pension so she is planning to claim it early. I haven't heard anything to support this belief.

She will feel a bit stupid after October 30th I would guess.
However  DB pension administrators are not known for their speed of reaction, so the chance of getting the pension paid out in the next 5 weeks must be pretty slim .
In fact with some of them nothing at all will have happened by Oct 30th, so she could always cancel her application.