Threat to Homes if Pension Lump Sum Attacked

Every Autumn statement, rumours emanate on the removal, or further restriction, of the Pension Commencement Lump Sum (previously commonly known as the tax free lump sum).
 
Dec. 4, 2012 - PRLog -- Whilst we can empathise with the Government’s austerity measures, the threat to remove or restrict a major attractive reason to save in a pension (as seen through the eyes of a saver) will be unintentionally catastrophic.

Many of the home-owning Personal Pension savers in the late 1980s and early 1990s started building up tax efficient pension funds from which their mortgage loans were to be paid off using the lump sum, with the remaining fund to provide their income in retirement.

With the 25th anniversary of personal pensions arriving in July 2013, any removal or restriction of the lump sum will see many at retirement unable to pay off their mortgage debt and thus face selling their family homes. The lump sum is also commonly earmarked for essential home improvements for retirement, paying off family debt and funding school fees for grandchildren.

Simon Bonnett, Head of Wealth Management at Fiducia Wealth Management in Colchester urges common sense. ‘The law of unintended consequences may well prove calamitous for new pensioners if the lump sum benefit is removed or restricted. We urge the Government to think wisely and not to implement any more major reforms that would put people off saving, especially with NEST only one month old ’.
End
Source:Fiducia Wealth Management Ltd
Email:***@fiduciawealth.co.uk
Posted By:***@fiduciawealth.co.uk Email Verified
Phone:01206 321045
Zip:CO6 6AD
Tags:Investments, Pensions, Financial Advice
Industry:Wealth management, Finance
Location:Colchester - Essex - United Kingdom
Account Email Address Verified     Account Phone Number Verified     Disclaimer     Report Abuse
Fiducia Wealth Management PRs
Trending News
Top Daily News
Top Weekly News



Like PRLog?
9K2K1K
Click to Share