Autumn statement 2013 - workplace and personal pensions
Chancellor George Osborne delivered his Autumn Statement on 5 December 2013, and these are the future changes relating to workplace and personal pensions.
The government will introduce individual protection 2014 (IP2014) because the lifetime allowance is reducing to £1.25 million from 6 April 2014. Those with IP2014 will have a lifetime allowance of the value of their pension savings on 5 April 2014, subject to an overall maximum of £1.5 million.
To read more about the annual allowance, click here.
GAD Review - no changes to income drawdown rate
At Budget 2013, the government said that the Government Actuary's Department (GAD) would review income drawdown tables to see if income drawdown rates are a reasonable match to annuity rates. GAD has found that withdrawal rates are a reasonable match to annuity rates, so the government will not change the basis on which the GAD tables are drawn up.
To read more about income drawdown, click here.
Pension commencement lump sums - no changes
The Autumn Statement did not mention making any changes to the current legislation for the taxing of cash lump sums on retirement.
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