Finally some good news...

[Palfrem]

I've posted a few threads up here about my taking early retirement and annuities, income drawdown, etc., etc.

Seems the latest budget has removed all the hassle for me.

If I have got this right, it now means I can just cash in all my money purchase pension pots, pay HMG 20% tax on the proceeds and live off what's left?

No IFAs to pay, no management fees, no crappy annuity rates....

This sounds too simple .....

 

[Dryce]

Interesting stock market impact

Kind of demonstrates where the money and benefits have actually been going prior to this change.

 

[C240Sport97]

If I have got this right, it now means I can just cash in all my money purchase pension pots, pay HMG 20% tax on the proceeds and live off what's left?

that's not how it reads to me ..

 

[SLK32AMG]

Interesting stock market impact

Kind of demonstrates where the money and benefits have actually been going prior to this change.

It worked well for one of my stocks Landsdown Hargreaves it went up £1750 in less than a hour so took profits happy days :bannana:

 

[SLK32AMG]

I've posted a few threads up here about my taking early retirement and annuities, income drawdown, etc., etc.

Seems the latest budget has removed all the hassle for me.

If I have got this right, it now means I can just cash in all my money purchase pension pots, pay HMG 20% tax on the proceeds and live off what's left?

No IFAs to pay, no management fees, no crappy annuity rates....

This sounds too simple .....

That show i read it but there are certain criteria's to meet

 

[janner]

By the time you get there the rules will have changed again, probably several times.

 

[renault12ts]

1 The tax rate hasn't been defined.
2 The Finance Bill is just that...watch this space.
3 If it does happen...expect a large house price bubble...it's what people spend their money on when they didn't think they had any.

Think of it this way. Put £10000 into your pension pot today, at 40% tax relief...cost £6000. Cash in tomorrow and pay 20% tax...receive £8000...I don't think so.

 

[Dryce]

Think of it this way. Put £10000 into your pension pot today, at 40% tax relief...cost £6000. Cash in tomorrow and pay 20% tax...receive £8000...I don't think so.

Which is in effect the current setup. But the 'pay 20% tax' is spread out.

There was an interesting comment by one news commentator that suggested this would provide a windfall for the government in the short term as people cashed out larger sums and coughed the tax sooner than they would have done otherwise.

The existing setup tying people to annuities is unsatisfactory. My guess is that the new setup will not exactly be entirely satisfactory either once the devil of the detail becomes apparent and they no doubt tinker with the rules again in successive years.

 

[Palfrem]

Think of it this way. Put £10000 into your pension pot today, at 40% tax relief...cost £6000. Cash in tomorrow and pay 20% tax...receive £8000...I don't think so.

I might give that a try.

 

[The _Don]

http://www.dailymail.co.uk/money/ne...sioners-able-access-WHOLE-pension-age-55.html