Spring Budget 2023: Do you need to review your pension plan? 

Author: Adrian Brown

Chartered Financial Planner

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On Wednesday 15 March, Jeremy Hunt rose to announce his first Spring Budget as Chancellor, which he described as a Budget for long term, sustainable growth.

As always, the devil will be in the detail, which will become apparent over the next few days.

The Big Announcement from the Budget potentially impacting our clients are the radical changes to the pension rules.

  • The lifetime allowance has been with us since 2006, restricting the total amount that can be saved in a pension with full tax relief. It is now being abolished, as are the tax charges for those who exceed the allowance.
  • The amount that can be withdrawn as a tax free lump sum is being restricted, however, the details for this are not yet clear.
  • Annual allowances, limits on the amounts that can be contributed to pensions with full tax relief, are also being increased from £40,000 to £60,000.

These changes will have a significant impact on the pensions landscape, making the need for independent financial advice more important than ever, including for people who thought pension saving was a less attractive option due to the very restrictions that are now being relaxed or removed.

There were no changes to ISA allowances.

If you have either received recent advice or would like some advice on pension planning, please speak to your financial planner to discuss how the Spring budget may have affected your financial situation, as this may have changed.

If you require help with your pension planning, please speak to a member of our financial planning team on 01223 233331, or email info@mmwealth.co.uk

Opinions constitute our judgment as of this date and are subject to change without warning.  The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment.

The information in this article is not intended as an offer or solicitation to buy or sell securities or any other investment, nor does it constitute a personal recommendation.

The Financial Conduct Authority do not regulate tax planning.

The information contained within this blog is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change.

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