Forums Forums National News The Budget 2015 Live

You have been able to take up to 25% of your pension as a lump sum tax-free for a long time.

If you take more than 25% as a lump sum and its not re-invested in another recognised pension scheme you get taxed on the lump sum.

It is absolute madness because there are going to be quite a few people who will snatch their whole pension and blow it, then they will be supported by the state benefits/credits systems - I can only assume the government intends to catch these people under the "intentionally making yourself poor" rules, but I didn't think they applied to credits (eg Pension Credit), I could be wrong.

I've been watching this unfold and the amount of misleading information being publicised by the government and financial institutions is astounding - get ready for the miss-selling cases appearing in the next few years.

I personally think it was introduced by the tories when they didn't think they were going to elected into government again and it was going to be a back-slap to the next government.

granny you a star most of what you say is 95% true.love to meet you and discuss the other 5%.Are you up to go the corner on a wiki night out?

diggingdeeper.who do you think is going to get richer from this new rule

I believe the intention was to garner the pensioner vote but I don't think they took into account that senility is not a compulsary factor of aging. The reception the PM received today would have been a bit of an eye opener.

Could be. At the moment I'm stuck in a wet suit off the coast of somewhere with a bunch of bananas. If I'm back in time, I'll let you know. By the way, 95% is not quite good enough.


In addition:
An overhaul of the state pension system will see a single-tier pension - of £144 a week at today's prices - being paid to every qualifying new pensioner from April 2017 at the earliest.

Suspecting that will then mean no further pension credits issued for those qualifying.
We have to be ten steps ahead and if that has been passed, it must have been voted for by all parties.
Don't cash your pensions in.

Pension advisers, banks and other financial institutions and their share holders.

Perhaps you should have asked who is going to get poorer, the answer to that is a lot of people who have been misled or ill-advised.