Henry Smith MP has given his backing to the Government’s pension reforms that come into effect next month.
On Monday, 6th April, around 540,000 people will be able to take control of their savings for the first time and plan for the future in a way that suits them best.
Henry said;
“Over the last five years, the Government have committed to spending £10 billion more on the basic state pension over the course of the Parliament, than would have been so without the triple lock in place.
“I was pleased to be in the House of Commons last year when the Chancellor announced that, from next month, the 55% tax charge on pensions being passed on will be abolished.
“I am pleased that the Conservatives will ensure there is greater transparency of pensions – the right decision for Crawley pensioners.”
At last year’s Budget, the Chancellor of the Exchequer announced that 320,000 people each year would get the freedom to access their pension pots flexibly without being hit with punitive tax rates.
Individuals will also be able to pass on their unused defined contribution pension funds to a nominated beneficiary when they die, rather than paying the 55% tax charge which currently applies.
As a transitional step the government last year made it easier for people to access their pension savings flexibly or withdraw a lump sum. Recent industry data shows that sales of flexible pension products have more than doubled following the introduction of interim pension freedoms in March last year.
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