George Osborne plans pension raid
Pensioners are already looking at a reduction of the principle of tax-free pension saving, with the full higher rate of tax relief being removed. Looks like the tax-free lump sum could also be getting the chop as well, thanks to a reworking of the ISA system.
This tax-free business is basically when someone retires, and they get the chance to withdraw 25% of their savings, without paying any tax on it on the way in, or out, of their pot.
Basically, you can take a chunk and go wild, before deciding what to do with the rest of it.
However, that could be all changing, as George Osborne looks to balance the books, and he's noticed that there's a lot of money floating around in pensions. Billions, in fact, according to government figures. Of course, there's new freedoms with pensions, which have become more flexible recently, however, for those who haven't retired yet, new taxes could be awaiting you.
The Treasury are looking at ways of reforming this relief, and it might be scaled back, or indeed, replaced with a new ISA-ish system. Concerning the latter, it means money that was previously untaxed, would now be taxed on the way into your pot (not on the way out, mercifully, but that might change in due course).
The consultation that the Treasury are doing, regarding all this, will finish and any changes will be announced during Osborne's Budget on 16th March.