The most eye-catching change announced by U.K. Chancellor of the Exchequer George Osborne in his budget was the scrapping of most of the constraints on how new retirees can manage their pension savings.
Instead of being pushed to buy an annuity, 13 million savers in so-called defined contribution plans will be able to withdraw their funds gradually or in full. A 55 percent tax rate on withdrawing savings at the start of retirement will be eliminated and most retirees will face a 20 percent rate instead. “People who have worked hard and saved hard all their lives, and done the ...
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