Labour won't like that...
The pension changes are massive. Technically, you've not been forced to buy an annuity for 2 or 3 years now through income drawdown but it was a bit messy. The new system simplifies it. Essentially, do what you want with your pension pot.
Tory opponents have been struggling to deal with the news. Labour and the TUC have been agitating for these changes, confident that they wouldn't happen for a while. But suddenly, bang, they have happened, and they don't quite know what to do. Labour have finally come out and given the reforms a guarded welcome, but they look uncomfortable.
Ponzi scheme architect jailed for 40 months
"So he'll be out before the end of next year, and will no doubt be rubbing his hands together at the thought of all those pension pots being unlocked. ... I dread to think of the number of people who are going to lose their life's savings to tw*ts like this. I suspect Bromley will become the Lamborghini capital of England!"
How ironic:
Budget 2014: The chancellor's plan to unlock pensions
Financial Conduct Authority's warning on pension unlocking
"We urge you to be wary of any schemes that offer the chance to take money from your pension by unlocking some of your retirement pot early. ... Early access to a pension is rarely in anyone’s long-term financial interests."
It would be interesting to know what Osborne will think of anyone who does end up losing their life savings to fraudsters. Could this be a clue?
Eyes down . . . how Osborne dodged blame for bingo gaffe
"The controversial post-Budget bingo “poster” blamed on Grant Shapps, the Tory chairman, was designed in the Treasury and signed off by the Chancellor, the Telegraph has learnt. After the advertisement highlighting cuts to bingo tax and beer duty was issued it was dubbed a condescending public relations disaster and there were calls for Mr Shapps to be sacked. But according to Tory MPs, appalled that the party chairman was forced to take the blame, it was approved at the highest level and George Osborne was enthusiastic about it."
2. So....it'll affect almost no one. If you've got a big pension pot, leave it where it is, invest it, draw down GAD...120%, 150%. You don't want more because it'll end up as less (you'll erode the pension pot) unless you think you can get 10%+ growth per year.
3. This is if the law passes, they haven't passed it yet.
4. You won't be able to withdraw your whole pension pot with just Swiss/no tax liability if you live overseas. What's going to stop you? I don't know, but they'll find something.
Having said that, the annuity business has been a scam for years and it's long past time that something was done about it. I'm just unconvinced that this is the right something.
Using the 10k UK personal allowance after the 25% tax free lump sum. It will take a few years & no tax to pay in Malta .
I any even transfer my Swiss pension to the UK
They will get social security