Pensions Minister, Steve Webb, with the Lib Dem team at the Dolphin in Newbury 2013.
Today marks the largest overhaul of the pensions system in almost a century, giving people the freedom to take control of their own pension. Part of the Lib dem Campaign to create an Age Ready Britain, which I support wholeheartedly as a good thing for Newbury and West Berkshire.
From today (Monday April 6) 300,000 individuals a year with defined contribution pension savings will be able to access them as they wish when they turn 55 – subject to their marginal rate of tax.
This is on the biggest ever changes to how people access their pensions, removing the requirement for many to purchase an annuity.
Announced in the Budget in 2014, these changes were driven by the Liberal Democrat pensions Minister Steve Webb, who has overseen a liberal revolution in the British pensions system.
Steve does offer this warning, though:
“There is nothing magical about 6 April,” he told the Guardian. “I think there is a case for waiting and seeing if you can. You don’t have to rush this. Wait and see what products become available. If you are in a position not to make a decision [about your money] on 6 April, I suggest you don’t.”
See also Pensions Overhaul 2 for details of increases to state pension.