Pension Changes 27th March 2014

What are the pension changes due at 27th March 2014?

Here is a brief summary of some of the changes:

Triviality and Small Pensions.  If you have a small pension the whole amount that can be taken as a lump sum. This amount has been increased to £10,000 per pension pot, and the total can include up to three pensions of £10,000 giving a combined maximum triviality payment of £30,000.  This is only available after age 55.

Amount to be withdrawn from a pension can be increased.  Each year the Government Actuary’s Department sets a rate , broadly similar to an annuity rate, for the basis of calculation of pension benefits.  Previously, the maximum that could be drawn from a pension is 120% of that GAD rate.  From today this is increased to 150% of the GAD rate.

For more advice on pensions in Spain, QROPs and your pension options please email barry.davys@spectrum-ifa.com  of The Spectrum IFA Group, specialist financial advisers to the international community.

 

 

Author: Barry Davys

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