07-04-2015, 10:14 AM
21
Re: Big news in budget. No need for annuities !!
I think one needs to look a little deeper into Osborne's reasons for freeing up pensions.1 Anyone who takes a significant sum from his/her pension pot will probably incur a tax bill on the sum drawn down thus boosting the exchequer tax take..
2. Cash realised from pension pots and spent now will boost sales which will obviously help to grow the economy in the short term
3. Problems regarding those who have spent/squandered their pension pot and fall back into relying more heavily on the state in the future will happen on someone else's watch thus the bombshell has successfully been kicked down the road for someone else to deal with.
I agree an alternative to the annuity only approach had to be found or a way found to enhance annuities but this total freedom will come back to haunt us much the same as it has done in Australia.
07-04-2015, 12:04 PM
22
Re: Big news in budget. No need for annuities !!
VM, I think your analysis is probably quite right.If you've only got a small pension pot, it won't make much difference, but if you have a reasonably large pension pot, you can get a good tax free pension by drawing down on from the pot, taking the 25% tax free and leaving the rest in something called a 'crystalised fund'. This remains asscoiated with the pot and so is tax free if you don't touch it.
07-04-2015, 02:02 PM
23
Re: Big news in budget. No need for annuities !!
If I had a pension pot of £100000 I'd be ecstatic
. Nowhere anywhere like it for me. I will be paying tax, but the balance will be well worth it. I will keep my pension I have at the moment, until I retire. Cash in another one for now. The best of both worlds for me.
07-04-2015, 03:39 PM
24
Re: Big news in budget. No need for annuities !!
"If I had a pension pot of £100000 I'd be ecstatic ".Oh dear Myra, in that case if you say my pension pot, you'd need tranquilisers
Unfortunately, it's for my final salary pension. I've got another small final salary pot - enough for a half case of wine (after tax) every month.
07-04-2015, 04:42 PM
25
Re: Big news in budget. No need for annuities !!
Originally Posted by Grumblewagon
->
"If I had a pension pot of £100000 I'd be ecstatic ".Oh dear Myra, in that case if you say my pension pot, you'd need tranquilisers
Unfortunately, it's for my final salary pension. I've got another small final salary pot - enough for a half case of wine (after tax) every month.
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