Pensions : George Osborne Makes Right Decision For Choice.

The 2014 Budget is a landmark for all of us who hold freedom of choice and independence dear.

For many years, pensioners in the UK have been forced to purchase annuities on retirement. With the average pension pot little more than £30,000, annual guaranteed income from an annuity has been pitiful for many pensioners. On the other hand, the companies providing the annuities have been enjoying attractive profits.

I have been saying for some time that pensioners should be free to use their hard-earned savings as they wish. I have to confess that I had no great hope that change would come about in my lifetime- BUT NOW, THANKS TO GEORGE OSBORNE, IT HAS!

From 2015, pensioners will be able to use their pension pots as they see fit. In practice, this means most will pay only 20% income tax, rather than the harsh 55% which currently applies to most pension withdrawals.

Of course, the annuity marketeers are not pleased.This too is a good sign. Often, the Chancellor is accused of pandering to friends in the City. THE CHARGE CLEARLY DOES NOT STICK IN THIS CASE.

This is, of course, not a panacea for all the problems related to pensions.Far too few of us are currently making proper provision for the time when we can no longer work. We need to see more people saving more. The compulsory enrollment into work-based pensions recently introduced will help- but it is only a start.

My belief is that people should not retire unless unable to work. #RetireWhenYouDie is my motto. However, free choice must of course once again apply.Thanks to the excellent changes being made by Mr Osborne, more who do want to retire should be able to do so in a financially advantageous manner.

Some would say that this is all a bit of electioneering by the Conservative Party. It has certainly given them a boost in the Opinion Polls - and, for once, this is well-deserved.

 

Sunday, 23rd March 2014

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