Chancellor tells savers they can withdraw ‘as much or as little as they want’ from their pension
Workers will be able to use their pension pots like bank accounts from the age of 55 and withdraw thousands of pounds to save, invest or spend as they wish on holidays or other purchases.
George Osborne, the Chancellor, said that people would be able to take advantage of the Government’s flagship pension reforms to access “as much or as little as they want” from their savings.
Under the reforms those approaching retirement and pensioners will be able to dip into the retirement funds whenever they want. The first 25 per cent withdrawn will not be taxed, while the rest will be taxed at the individual’s marginal rate.
The move builds on the pension reforms Mr Osborne announced in his Budget, under which he scrapped rules that force most Britons to use their pension savings to buy an annuity.
At the time, ministers emphasised that pensioners would be able to draw down the entirety of their pension pots to save, invest in property or even buy a Lamborghini.