Unprecedented. I never thought, as I used to dig in all over the place, that one day, I'd be staring at my TV completely and totally gobsmacked at pension news on budget day. Yes, raising the annual ISA limit to be raised to £15000 and savings and investment ISAs fused. Good news, very good news!
Good news too, for someone with £10k in a pension is that they can simply take it as cash, no tax - no questions asked, perfect for (typically) 'wives of' in their late 40s and 50s who want tax relief, simplicity and no tax. All the way up to £30,000 access too, under triviality rules, with some tax. That's such good news for some clients, really good news.
If ever anyone was worried about personal pensions right now, this budget is one of the most unprecedented in history. Especially as his mutterings over public sectot pensions 30 minutes before was ominious. Definitely a vote winner, but what about when pension savings have all been spent?
The radical nature of it also means that from April the flexible drawdown minimum income requirement will reduce from £20,000 to £12,000, bringing it easily into Flt Lt/ Sqn Ldr territory. That means so many more people can take their entire pots as cash, at far lower tax rates too.
The maximum income a person in income drawdown can take will rise from 120% of GAD to 150% too. I'm so pleased that annuities have, effectively, been killed off. I'm seeing 6 clients later today - if you're reading this, apologies in advance if I appear distracted..