DC deliberations on the Budget
This year’s Budget has grabbed the pensions headlines. The implications for pensions are likely to be significant, with consequences for defined-contribution (DC) schemes and, indirectly, for defined-benefit (DB) schemes. Will the changes be more far reaching than the headlines have anticipated?
What did the Budget say about DC pensions? This year’s Budget changes in respect of pensions have had a lot of coverage but, in summary, can be split into two blocks: the 27 March 2014 changes and proposed reforms scheduled to take effect in April 2015.
27 March 2014 changes:
- Increasing the maximum amount that can be taken each year from a capped drawdown arrangement from 120 per cent to 150 per cent of an equivalent annuity;
- Reducing the amount of guaranteed income needed in retirement to access flexible drawdown from £20,000 each year to £12,000 each year;
- Increasing the trivial commutation lump-sum limit from £18,000 to £30,000; and
- Increasing the size of a small pension pot that can be taken as a lump sum from £2,000 to £10,000…
Click on the link below to read the rest of the Wragge & Co briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Wragge Lawrence Graham & Co
News from The Lawyer
Briefings from Wragge Lawrence Graham & Co
The defence of illegality – which prevents a claimant from bringing a claim that arises out of its own illegal acts – can’t be used where the company is claiming against its directors.
Principle of the free movement of capital upheld in recent decision.