Wow, that budget seems to be weighted against my portfolio!
I guess I should expect the tax increases on tobacco etc. even the gambling duties, but the pension annuity was a surprise, and I'm sure that that change has mileage to run yet.
Whether or not the Pensions provider can respond with a more flexible product is now the question.
As an observer, the annuity v. drawdown question had been brought to the table by those savvy SIPP investors, who it can be assumed have shown they have the knowledge, and discipline to manage a suitable provision for themselves.
A further downside being what happens to annuity funds with regards inheritance and a persons estate.
So I would strongly suggest that, in many cases, annuities have become a dated, restrictive product, in a market where you had (before the budget), few alternatives, with seemingly too many financial gains weighted towards the providers.
I do welcome the change but it remains to be seen whether this widespread change has a different effect.
I recall a previous government white paper which compared the merits of pensions with those of ISA's which seemed to come down slightly in favour of the flexibility that ISA's gave to a consumer but this flexibility was also supporting life decisions rather than just being a retirement provision.
The risk and temptation is that rainy days, or even sunny days, become more of a here and now priority than long term income provision.
Perhaps pension release is a means of moulding pensions into this style of "lifetime" account.
I also wonder whether or not this sudden release of income might fall into the long running, long terms care costs debate.
It remains to be seen, and I'm sure that there is a lot to be gained from yesterdays changes but at the moment I am still picking myself up after the seemingly "targeted" attack on my portfolio.
Ha ha, be lucky.
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