Budgets these days tend to have far fewer surprises than they used to. It is now common practice in the political world to brief the Press prior to announcements and, even in Budgets, there are often issues flagged beforehand. However, the changes to pensions announced by George Osborne in March were a real shock to both the public and the pension providers. Arguably, they represented the biggest change in a lifetime to pensions in the UK, providing unprecedented access to funds and removing what many savers perceive to be one of their main drawbacks. The main change sees the removal of the requirement to buy an annuity (or income) with your pension from April 2015, allowing access to the whole fund if required, albeit 75% would be taxed at your marginal rate. This does not, however, apply to Defined Benefit schemes (such as Final Salary Schemes). In the meantime, there were also changes allowing small pension policies, up to £10,000, to be taken as cash with a limit of three such pensions in a person 's lifetime . The level for trivial pensions was also increased from £18,000 to £30,000, meaning that anyone with a combined total of pension funds up to this limit can take them as cash. Although at first glance this may all seem wonderful news, there are many who have considerable reservations about the long term effects. The previous lack of flexibility was seen as an advantage by many as it stopped the possibility of a pension pot, designed to provide an income in retirement, being spent many years before someone's death. This could, as a result, lead to a greater reliance on welfare benefits . There are also the possible inflationary implications if, as a result of these changes, a great deal of cash comes into the economy. This could also lead to a temporary increase in tax revenue for the Government, something that many feel is the real reason behind these changes . If you would like to discuss or review your own investments or pensions then please call us. Initial meetings are without cost and we are happy to come to see you in the comfort of your own home. See our advert below. This article does not constitute advice and should not be taken as a recommendation to undertake any course of action mentioned without consulting a relevant professional. 26 Phonebox Magazine ··---·--+++- --- ADVISON , NoEPTNoeili--- Fi NANc IAL Aov,s eii.s brings you FinanceMatters Budget sends shock waves through the pension industry A 65 year old male retiring at the end of 2012 would, on average, receive 56% less pension than in 1994, and a 65 year old female, 50% less. ThesameresearcihssuedbyMoneyfacitnsearly2013alsoshowsannuityratesinthe UKhavefallenin15ofthelast18yearsandthereductiownas11.5%in2012alone. If youwishto reviewyourpensionarrangemenotsr youareapproachinrgetirement, whynotcontactAdvisonto seehowwemaybeableto maximistehebenefiftrom yourretiremenptlanning. Ourfinancialadviserswill helpyouto: • ensureyouhaveaclearfinanciapllanforthefuture • provideprotectioanndpeaceofmindforyourfamily • makethemostofyourhardearnedsavingsandinvestments • saveforyourretirement •minimiseyourpersonatalxliabilities • protecytourestateforyourbeneficiaries ...andgiveyouaccessto ongoingadviceandsupport