Beware Negative Impact of Pension Changes

BUDGET 2015: Policies may look like a boon to retirement savers - but the devil is in the detail, say experts, and many civil servants and savvy savers will be penalised

Emma Simon 18 March, 2015 | 3:36PM
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This was a Budget aimed squarely at savers, with many of the changes targeted specifically at those saving for their retirement.

There were two key pension changes in the Budget: First up was the confirmation of the news that the lifetime allowance - the maximum amount that can be saved into a pension - would be cut from £1.25 million to £1 million. This allowance will rise in line with inflation from 2018.

More welcome, was the announcement of a ‘second-hand’ annuity market - allowing five million pensioners to cash in these lifetime contracts.

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About Author

Emma Simon

Emma Simon  is a financial journalist, specialising in investment and consumer issues, writing for Morningstar.co.uk

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