Radical new changes to pensions will give financial control back to individuals, according to a Lancashire-based business leader.
That’s the view of Anthony Hoskisson, managing director of Questa Chartered, who said the changes from April 2015 will create new opportunities, freedom and choice.
The comments come after a new report by the HMRC predicted that 130,000 retirees a year are expected to take cash out of their pension pots under the new flexibility rules.
Anthony explained: “The new legislation means people will be able to use their pension pots exactly how and when they want. It creates lots of opportunities and gives control back to the individual - there are now real choices.”
From next April, people from the age of 55 will be able to take cash out of their pension pots as they see fit. The first 25 per cent will be tax free, and the rest will be subject to income tax.
When the new legislation was first announced there were fears that the new freedoms would see people ‘blow’ their pensions on inappropriate choices, falling back on the state for support. Anthony added: “As a business, we have to exercise caution and there is no doubt that people will have to take time to plan exactly how to fund their retirement but whether you have a pension pot of £10,000 or £2m, the change in legislation offers significant, beneficial opportunities. It will allow people to pass on a greater amount of wealth to their families.”