Post-election changes could target tax free savings - BDO

Actuarial director John Broome Saunders warns the next government could introduce a lower-rate tax on the whole lump sum, but increase the current 25% allowance to offset this. Broome Saunders says: "Pension scheme members would take home a similar, or possibly higher, lump sum and therefore wouldn't feel too upset. Moreover, the Revenue would get an immediate boost to tax revenues. Of course scheme members would lose out in the longer term, as they'd end up with lower pensions. "Astute pension savers might be well advised to take their tax-free cash and start drawing benefits now, to...