UK retirees face £168,275 hammering as Andy Burnham warned of ‘consequences’
UK retirees face the possibility of a huge hammering as Andy Burnham is warned of "unintended consequences" if he lets his Chancellor make further pension changes. An expert has said John Healey must not tweak the system further after the Prime Minister revealed that he would alter the State Pension triple lock in 2030. There is also speculation that the amount that people can withdraw from their pension on a tax-free basis could drop from £268,275 to £100,000 — a £168,275 hit.
TL;DR
- There is a possibility of a substantial reduction in the tax-free cash withdrawal from UK pensions, potentially dropping from £268,275 to £100,000.
- Experts warn that further changes to the pension system could undermine saver confidence, especially after the State Pension triple lock is set to be altered from 2030.
- The government plans to change the State Pension triple lock to rise by the highest of inflation, 2.5%, or the increase needed to maintain its record high against average earnings.
- These pension reforms are projected to save the government approximately £15 billion annually by 2030 and £50 billion by 2050, intended to fund a new National Care Service.
- Proposals like means-testing the State Pension have been rejected by the government, who believe their current plan addresses long-standing issues.