What to tell clients about the Chancellor's 'radical' pension changes

Jenna Towler
clock •

George Osborne's fifth Budget revealed a raft of retirement income reforms giving pension savers freedom of choice.

The radical changes, the biggest in a generation, are set to be fully in force by 2015. If the changes go ahead anyone of pension age will be able to draw as much from their pension pot as they choose at any time. One quarter remains tax free and the balance would be taxed at about 20% and would be tax as income in the year it is taken. Standard Life said though the detail isn't set in stone it signals the government's desire to give savers more control and responsibility over their retirement income. "It could represent pension utopia, but only with advice to solve an increasingly co...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Do clients already own the best retirement portfolio?

Do clients already own the best retirement portfolio?

'Feeling safer and being safer aren't the same thing'

Alex Funk
clock 29 October 2026 • 4 min read
Budget 26: Government to get rid of two-year tax rule on lump sum death benefits

Budget 26: Government to get rid of two-year tax rule on lump sum death benefits

Changes will also be made to how tax due on excess lump sum death benefits is collected

Jonathan Stapleton
clock 28 October 2026 • 1 min read
Budget 26: State pensioners to be shielded from income tax

Budget 26: State pensioners to be shielded from income tax

State pension expected to rise to £13,036

Sophia Panayi
clock 28 October 2026 • 2 min read