Advisers are working hard to combat client fears following recent speculation that pension savers may lose their 25% tax-free lump sum following the April 2016 Budget.
The Sunday Times recently quoted ex-pensions minister Steve Webb who said that the tax-free lump sum, accessible after aged 55, could be on the ‘brink of extinction'. He went on to say that given its cost of £4bn it would be easy to see that the Chancellor might get rid of it in the 2016 budget. The tax-free lump sum could be removed as part of wider changes to pension tax relief. The government is currently assessing whether to overhaul the current system. A 'pension ISA' system or flat-rate relief between 22% and 33% are being considered. This speculation has caused a great d...
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