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

Women in their 50s facing 'pensions crunch'

Women in their 50s facing 'pensions crunch'

Woman aged between 50 and 59 projected to retire on £12,600 a year

Martin Richmond
clock 11 November 2026 • 3 min read
Why the pensions dashboard could raise more questions than it answers

Why the pensions dashboard could raise more questions than it answers

The 31 October connection deadline was a 'starting gun rather than the finish line'

Robert Holford
clock 09 November 2026 • 4 min read
Pension Lab processes more than one million digital LoAs

Pension Lab processes more than one million digital LoAs

Challenge around ‘standards for consistency’

Sophia Panayi
clock 06 November 2026 • 1 min read