From Morningstar: 2024-10-09 06:27:00

A pension tax relief grab may be off the table, but UK’s pension rules face significant changes. The end of the government’s honeymoon is a shift in front-line politics. Keir Starmer faced scandal amid Taylor Swift’s record-breaking tour. Labour’s chancellor prepares the country for tax increases.

Labour’s new chancellor warns of tax increases but faces accusations of pessimism. The government is stuck between commitments and economic realities. Speculation on pension tax incentives sways investors’ behavior. Changes to pension tax reliefs may not hit public sector workers hard.

Potential pension changes in the upcoming budget include adjustments to tax-free cash withdrawals and thresholds. Limiting benefits may yield billions in revenue. Inheritance tax, capital gains tax, and pension rules could also see changes in the budget.

Pension freedoms could see minimum access age increase, affecting private pension holders. Inheritance tax rules might be revised to apply a standard rate to all pension inheritances. Concerned savers are advised to bring forward tax-free lump sum withdrawals and seek professional advice.

Topping up personal pensions could be a strategic move ahead of the budget changes. Taking tax-free cash should be carefully considered. Uncertainty drives investors to increase pension contributions. Seek advice before making decisions amidst potential pension changes.



Read more at Morningstar: Budget 2024 Preview: What’s in Store For Pensions…