Asks Keith Anderson, 75, from Newport, who says there was speculation of this being limited to £100,000
From the age of 55 (or 57 from 2028), anyone with pension savings can take a quarter of their money as a tax-free lump sum up to a maximum of £268,275.
Keith is correct that there was plenty of speculation that this cap would be lowered, in order to raise more in tax for the government. It prompted some people to act earlier than they might otherwise have done.
I’ve covered lots of Budgets and lots of pension changes are often mooted, then don’t happen. This is another one.
It will be a relief to some people hoping, for example, to pay off a mortgage (or help their children or grandchildren to get one) in the future by taking some of their pension pot as a tax-free lump sum.
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