Proposals in last week's paper

pre-budget report

The Government plans to go ahead with raising the pensions age from 50 to 55 by 2010. It is proposin...

The Government plans to go ahead with raising the pensions age from 50 to 55 by 2010. It is proposing that schemes should be free to decide how and when to move to a minimum pension age of 55 by 2010. The new rules would allow up to 25% of the capital value of the pension, below the lifetime allowance, to be paid as a tax free lump sum. In addition, pension benefits must: • Start before age 75; • Not start before age 55 (age 50 until 2010), with an exception for ill-health and retirement. • Last for the remainder of the person's life; • Be paid in instalments at least annually; • ...