7th July 2014

Budget 2014 - Freedom and Choices in Pensions

Please reconsider providing total freedom of access to pension funds, to all those aged over 55 and amend the proposal to require everyone to secure a minimum level of guaranteed income (eg from their state pension, final salary (defined benefit) pension or guaranteed lifetime annuity) of £12kpa before being able to make unlimited withdrawals.

This change is necessary for the following reasons:

• Ordinary people with small pension funds will be at risk of exhausting their retirement savings, in a very short period or sit on their cash and be afraid to spend it 
•It is unfair to transfer the risk of retirement income provision from an insurance contract (this is what a guaranteed lifetime annuity is) to an individual who cannot predict how long they will live. 
•The proposals for guidance at retirement are well intentioned but very unlikely to deliver the depth of information required for those retiring to make informed decisions.

Read more

 

Budget, Pensions, Retirement

Registration

Free Registration and CPD

Read More

Related Articles_

UK Budget: What Investors Should Know

While the Chancellor met her fiscal rules with unexpected headroom, the real challenge lies in delivering on future commitments.

Read More

PIMCO: UK Market Outlook: From the BoE to the Budget—What Investors Need to Know

The UK is at an inflection point. In this episode, Rupert Harrison CBE—Senior Adviser at PIMCO and former Chief Economic Adviser to the UK government—and Dr. Peder Beck-Friis, Economist at PIMCO, share actionable insights on navigating the UK’s evolving investment landscape.

Read More

Fidelity Adviser Solutions: Labour’s ‘no choice’ tax-raising Budget

Last week, Rachel Reeves outlined her plans to raise revenue and fund public spending - but how might the new measures affect your clients' finances? Fidelity's Tom Stevenson shares his take on the key themes and their potential impact on your clients' finances.

Read More

You need to be logged in to comment on this article