Our Opinion: 2014
UK pensions are getting interesting
The UK’s recent budget has paved the way for the biggest shake up in pensions ever. From next April, most restrictions on pensions will be removed.
Pensions offered one of the most tax efficient investments possible for those resident and paying tax in the UK – even for a relatively short time. However, few international clients ever used them for saving, since they were forced to buy a UK annuity (income for life) with the majority of the savings. This meant they were unable to move funds to their home country or pass on the capital to future generations.
Before the budget, on retirement, only 25% of the funds could be taken as cash. The rest had to be given to an insurance company in return for an annuity. From next April, you can withdraw all your pensions in one go.
We will be watching the legislation closely as it evolves, to see how it will be of real benefit to our core client base.