I wonder with the new pension lump sum drawdown rules..Fiasco?

[Chris_Sleeps]

There are lots of issues around liberalising the freedoms that people have with their pensions. As an axiom; with more freedom comes more responsibility. People will need to be aware of the tax implications of their decisions, the risks and benefits of each decision. It's an area in which there is a lot of room for error.

 

However, mandatory purchase of an annuity is no longer a feasible stance. It's inevitable that something had to be done.

 

The other side of this is that benefits to pensions following death have greatly improved. People can inheret more of a person's pot while avoiding the excessive tax bills - and running alongside this, money in ISAs can be moved to a spouse or partner without losing their tax-free status.

 

It's certainly going to be turbulent though.

[El Cid]

They're not high enough already??

 

Yes, house prices are too high; but I will consider buying my council house when I get my pension.

I am around 15 years away from retirement, but I lack a large deposit.

[WasThatWise]

It's further muddied by the fact that individual institutions that manage your pension do not have to offer all the options, Virgin Money for instance say you can take all of the pot if you want but if you want to do income drawdown to reduce exposure to taxation you have to transfer your oension pot to another provider which offers it, I don't know what the cost of that would be.