Tax-Free Cash Could Disappear In ‘Pension Robbery’

FUTURE PROOF: Former pension minister says introduction of Pension ISA could steal billions in tax relief from the next generation of savers

Emma Simon 23 February, 2016 | 1:55PM

There are growing concerns that millions of savers may no longer be able to take a tax-free cash lump from their pension if the Chancellor launches a ‘Pension ISA’ in this year’s Budget.

It is widely expected that there will be significant changes to the pension system this March – with either a ‘Pension ISA’ being introduced, or the Government abolishing higher-rate tax relief on pension contributions.

Both could signal the end of the perk that allows savers to access a quarter of their pension funds, tax-free from the age of 55.

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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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