Stay informed with free updates
Simply sign up to the Pensions myFT Digest — delivered directly to your inbox.
Have you tried to take a tax-free lump sum out of your pension and has the process been stumped by excessive delays? If so, we’d love to hear from you.
With a potential hole of more than £20bn in the public finances, the Treasury is looking closely at where extra revenue could be raised ahead of this year’s Budget on November 26.
There is speculation that the government will reduce the size of the tax-free lump sum that retirees can withdraw from their pension after the age of 55. The allowance is currently set at 25 per cent up to a cap of £268,275.
Worries about a further crackdown on pension taxes are part of the reason why the amount withdrawn from UK pensions in tax-free lump sums rose by more than 60 per cent over the past financial year as savers prepare for possible changes to the tax rules on retirement funds. People are also taking money out of their pension ahead of plans to bring them within inherited estates in 2027.
But some pension providers are struggling to keep up. If you’ve been caught up in delays, please get in touch at [email protected]. We will only publish your name with your permission.
Read the full article here