Pension rule leaves over 75s no access to lump sums

Well, it is a start in the tight direction, ridding the country of the unfair actions of labour.

A future fair for all was just another big lie, as big a lie as they have told, having claimed to have abolished boom or bust and countless others.

For them fair is fair to their voters, no one else, but do not look at their pensions!!

The article says if a person has ALREADY PASSED the age of 75 the best they can hope for is the new rules allow them to take a lump sum.

I was 75 on 7th May 2010. My financial adviser told me I must take an annuity (he discounted Income Drawdown and I agreed.

Clearly taking an Annuity in May has bedcome a disaster but was there an alternative then?

Yes, not to take it, as you could have continued.= as you were, but with the hefty tax hit.

The broker was looking for his fee on the grant of the annuity, not your interests, and he knew that the 75 rule was going to disappear. It has been heavily trailed, both sides.

You can try the FSA, but they are heavily prejudiced in favour of the brokers, ie you will not get justice out of them, but worth a shot.

Yet another error message and failure to post.

Snoekie, that is not true. If you were 75 BEFORE the budget, the new rules do not affect you and income needed to be secured at age 75. There is no way someone who turned 75 before 22 June could have continued in income drawdown.

Plus I don't understand Jason Butler's point about a Lump Sum. If 'his people' were already over 75 then he should have already advised them to take their lump sum. Nothing changed in the budget.

PS pretty sure the chairman of AMPS is Robert Graves, not Richard.

Anonymous 1, as I have read it, there is no obligation to take an annuity, there were changes, which I never understood, but the killer was that on death the chancellor hit the fund with a 82% tax bill, leaving your beneficiaries with 18%.

Was it that after 75 you had to take the income yielded, and not when you wanted it?

Pre 75 it was a 35% hit.

As regards the lump sum, this might be the 25% tax free sum that you could take from the funds. I took mine straight away as I didn't want to leave more for Brown?balls to attack. Funny, on their assets, what is mine is mine (for themselves), and what is yours is mine, both for expenses and for their preferred spending. There never was anything fair about their future fair for all. For them anyone with assets were fair game, but they wouldn't pay tax on the expenses perks!!

If you were 75 pre-budget, your pension still had to be secured be it by an annuity or Alternatively Secured Pension.

The reduction in death benefit tax to 35% also only applies to those who reached 75 after 22 June - Peter Dawson was not affected by the changes in the budget at all as he was already 75 at that date.

Re the lump sum, it was always the case that you had to take your 25% lump sum before age 75 or lose it. This has not changed, and I do not understand what Jason Butler is trying to say. If he had clients who turned 75 before the budget, they should have taken their lump sum already. If they turned 75 after the budget, they should still have taken their lump sum by their 75th birthday or they lose it. Anyone who didn't should be looking to their Adviser for an explanation...