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Queen’s Speech confirms ground-breaking pension reforms

June 4, 2014 11:38 AM
Originally published by UK Liberal Democrats

Today's Queen's Speech has today confirmed the introduction of Liberal Democrat reforms to the pensions system.

Building on key Liberal Democrat proposals unveiled in the 2014 Budget, the changes to the pension system will give savers greater freedom and financial security in retirement.

The Pensions Tax Bill has been driven by Liberal Democrat pensions minister Steve Webb. It is designed to ensure greater fairness in retirement.

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The reforms will introduce the biggest change to the way people are able to access their pension in almost a century, as it will provide people with greater freedom and choice to access their pension as they see fit.

Under the new system, people aged 55 or over, with defined contribution pension savings will be allowed to withdraw these savings, subject to their marginal rate of income tax and scheme rules.

The new legislation removes previous restrictions to the way people can access their pension savings and allows people total control over the money they have put aside for their retirement.