Asked by: Chloe Smith (Conservative - Norwich North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps the Government is taking to give pensioners more control over their savings.
Answered by David Gauke
Budget 14 announced the most radical change to the way people take their pensions for nearly a century. From April 2015, individuals aged 55 or over with defined contribution savings will have much greater flexibility over access to their pension savings, which they will be able to withdraw subject only to their marginal rate of income tax and their scheme rules. We have also made changes to allow more people to access greater flexibility.
In addition, ISAs, popular with over 24 million UK savers, are to be reformed from 1 July 2014 into a more flexible product. The New ISA will leave savers free to choose how to split their increased £15,000 annual allowance between cash and stocks and shares ISAs and to transfer funds in any direction between accounts.