Commenting on the news the government is to offer free, impartial guidance to help investors who have been given more control over their pension pots, Chris said:
“From April 2015, savers will be able to access their defined contribution pension as they wish at the point of retirement, subject to their marginal rate of Income Tax, instead of the current 55% charge for full withdrawal. The government has said these changes will be supported by free, impartial guidance to help people make informed decisions about how they use their defined contribution pension savings.
“However, once again, we are promised there will be guidance on pensions but given no steer as to how the government plans to deliver it. The ambiguity of this commitment will come as no comfort to the thousands of people who will be given access to their pension pots but who desperately need proper, tailored advice about how best to proceed.”
Commenting on the downgrade to UK inflation:
“Today the Chancellor revealed the outlook for inflation has been revised down to 1.5% for 2014, and 1.2% next year.
“These falls are great news for savers and provide a real chance for people to prepare for their retirements. With inflation out of the picture, investors can put money into their pension pots safe in the knowledge they have a chance to grow much faster than the prices of goods and services.”
Commenting on the news the ISA allowance will increase to £15,240 from next April:
“The increase in the ISA allowance means savers can now put even more aside to help prepare for their retirement. However, the problem for many savers remains what to do with their savings pots, especially as the cost of advice continues to climb. Wealth Horizon’s online advice service is designed to help plug this gap, offering a lower-cost solution for consumers who might have been priced out of advice.”