Consultation on freedom and choice in pensions
Close date: 11 June 2014
The Government proposes to increase the choice available to individuals when they access their defined-contribution pension savings. It proposes to introduce, from April 2015, a new system for how defined-contribution pension savings are taxed when they are accessed in retirement. Individuals will be able to draw down on their defined-contribution pension savings whenever and however they wish after the age of 55, regardless of their total savings. Any amount drawn down will be treated as income, and the tax-free pension commencement lump sum will continue to be available. The Government will not prescribe a particular product that people must purchase or invest in when they access their savings. It also proposes to increase the age at which an individual can take his or her private pension saving at the same rate as the increase in the state pension age so that, from 2028, people will not be able to draw their private pension benefits without a tax penalty until the age of 57.
Consultation document: Freedom and choice in pensions
Consultation response: Freedom and choice in pensions: government response to the consultation