Pensions

[Silver_Shiney]

I see that our illustrious Chancellor may be overhauling the pension system. One of the proposals under consideration is scrapping the tax relief on contributions and making pension payouts tax-free. Now, that should be fairly easy to implement for pension savings policies that have yet to be started, but I can't see how it would work for existing policies. Perhaps he'll raid existing plans to claw back the tax relief?

[Meg 50]

whatever he does - he'll win and we'll lose

[Silver_Shiney]

ain't dat de troof!!!

[Suekersh]

having recently finished work I have been considering what to do with my pension pot which isn't very big as I have only worked 15 hours a week for the past 28 years and had 10 years before that at home raising family.

I have been told that I can take 25 % tax free and either take the rest in a lump sum or transfer it into a flexible draw down pension to take whenever I want. I am going to do this to maximise my tax free allowance so spread out over the 7 years I have to wait for my old age pension and the pot will be empty or thereabouts.

I was going to leave it until later this year to do anything but I have read that the chancellor may get rid of the 25% tax free lump sum that can be taken.

Has anyone else read this or have any other info about it. Can he really do this without any notice?

I didn't want to rush into it before the budget but I am also not willing to let him get his hands on my hard earned cash which I had saved to fund my retirement.

Sue

[Not so ancient mariner]

I see that our illustrious Chancellor may be overhauling the pension system. One of the proposals under consideration is scrapping the tax relief on contributions and making pension payouts tax-free. Now, that should be fairly easy to implement for pension savings policies that have yet to be started, but I can't see how it would work for existing policies. Perhaps he'll raid existing plans to claw back the tax relief?

What? - a conservative chancellor taking a leaf out of Gordon Brown's book?? What IS the world coming to???

[Silver_Shiney]

having recently finished work I have been considering what to do with my pension pot which isn't very big as I have only worked 15 hours a week for the past 28 years and had 10 years before that at home raising family.

I have been told that I can take 25 % tax free and either take the rest in a lump sum or transfer it into a flexible draw down pension to take whenever I want. I am going to do this to maximise my tax free allowance so spread out over the 7 years I have to wait for my old age pension and the pot will be empty or thereabouts.

I was going to leave it until later this year to do anything but I have read that the chancellor may get rid of the 25% tax free lump sum that can be taken.

Has anyone else read this or have any other info about it. Can he really do this without any notice?

I didn't want to rush into it before the budget but I am also not willing to let him get his hands on my hard earned cash which I had saved to fund my retirement.

Sue

If you invest your 25% in an investment bond, you can take 5% PA (classed as return of income) without penalty or tax, and the investment should grow by more than 5%. Best speak to an IFA

[Suekersh]

I have spoken to an IFA about reinvesting the 25%. It is just deciding when to sort it. We go away in 3 weeks and not back until mid May. The budget is just before we go away.