It has been two years since pension freedoms were introduced, but there are still improvements that need to be made…
Financial experts are worried about the amount of money being taken from pension funds, with there being a danger of thousands of people running out of money before they die. There are also fears that younger people are not saving enough, or being properly educated on how to invest in their pensions. While pension freedoms benefit a lot of people, many have pointed out flaws in the system. The Telegraph have made 5 demands to ensure that pensions “work better for everyone”.
List of Pension Demands
First they suggest scrapping exit penalties for everyone, allowing people to move to a better deal when they want to. They want to move away from the “age 75 rule”, which means that if a pension saver dies after the age of 75, anything that is passed on to beneficiaries is taxed as income (or at 45% if taken as a lump sum). They also want penalties for saving after you have withdrawn from a pension to be removed.
The full list of pension “demands” can be found on The Telegraph website.
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