Changes in Budget to pensions

Beachfield1962

Do you have any general advice regarding taking my private pension early to avoid the tax changes regarding the tax on lump sums. I am curently 63 and I was going to take my pension at the age of 65 or 66 but is it prudent to take the pension early to avoid loosing 25% in tax of the lump sum?

SVaz

What tax changes? 

QrizB

SVaz said:

What tax changes? 

Yes, what tax changes?
Is there a rumour going around on social media that the Chancellor is going to axe the 25% tax-free, again? Didn't we all learn better last time?

Moonwolf

I'd say don't do anything you weren't going to do before.

This is what happened last time.

https://citywire.com/new-model-adviser/news/hmrc-says-tax-free-lump-sum-withdrawals-can-t-be-reversed/a2456169

Making bad decisions based on rumour and speculation is never a good idea.

In addition, while the government can do anything it wants, making changes without protecting people within 5-10 years of retirement who have already constructed plans is genuinely frowned upon.

cutestkids

There are no changes to the tax free lump sum, what are you talking about?

Albermarle

Before the budget which was in October 2024, there were numerous posts like yours, fired up by speculation in mainly the anti Labour media.
More sensible commentators concluded it was highly unlikely to happen.
In the end there was no mention of it in the budget.
Even more unlikely it would be in the forthcoming Spring statement.

The overriding advice is to not take any financial decisions based on media speculation about future legislation changes. ( Remember that in future  )

dunstonh

Beachfield1962 said:

Do you have any general advice regarding taking my private pension early to avoid the tax changes regarding the tax on lump sums. I am curently 63 and I was going to take my pension at the age of 65 or 66 but is it prudent to take the pension early to avoid loosing 25% in tax of the lump sum?

There are no changes on the tax on tax free lump sums.
There isn't a hint that any changes are expected either.   The Government has already said that the current cap on tax free cash is to remain.

Maybe you could tell us where you are getting your information from as it seems flawed.

Marcon

Beachfield1962 said:

Do you have any general advice regarding taking my private pension early to avoid the tax changes regarding the tax on lump sums. I am curently 63 and I was going to take my pension at the age of 65 or 66 but is it prudent to take the pension early to avoid loosing 25% in tax of the lump sum?

Yes. When any changes are confirmed as definite, and the relevant legislation is known, make decisions based on reality rather than rumour. 

Cobbler_tone

Don’t worry, it’ll be cancelled out by the rise of the tax threshold to £20k. 

Albermarle

Cobbler_tone said:

Don’t worry, it’ll be cancelled out by the rise of the tax threshold to £20k. 

What about the abolition of cash ISAs?

Aretnap

I heard Rachel Reeves is going to abolish all private property. So take it all out, and make sure you spend it on wine, women and song before March 26th.

(Alternatively you could always not make major financial decisions based off random things that you read in the Internet)