Budget 2014: Osborne confirms 'far reaching' pension reforms

The Chancellor has announced far reaching reforms to pensions in his fifth Budget speech and said "no one will have to buy an annuity" in the future.

Osborne said limits on income drawdown and flexible drawdown would be reduced and trust would be handed over to savers. He also each and every DC savers would get free impartial advice on how to get the most of their pension". Osborne said 13 million DC savers were currently railroaded towards buying an annuity but this would end. "Tax rules around these pensions suggest pensioners can't be trusted with their own pension pots. I reject this view," he said. Tax charges on lump sums will also be radically changed. He explained that at present people can take a quarter of their ...