The recent budget announcements on pension changes (and proposed changes), mean you’ll have greater choice and flexibility over how you can access and use your pension fund in the future.
Here is a summary of the post-Budget highlights:
* Annuities will still be available for those who are looking for a secure guaranteed income for the rest of their life
* The triviality limit of £18,000 will increase to £30,000
* The small pots maximum will increase to £10,000
* The maximum amount you will be able to withdraw will increase to 150% of an equivalent annuity each year
* The minimum guaranteed income required to access Flexible drawdown will be reduced to £12,000 a year
* From April 2015, the proposed changes would allow anyone from the age of 55 to draw as much or little from their pension pot as when they like with the excess amount taken over and above 25% subject to tax at their marginal rate.
Friends Life has created a diagram that clearly outlines what’s changed in the world of pensions from April 2014 and the proposed changes from April 2015. Click here to view this important information.
To find out more, please telephone 020 3728 7900 or send us an email.