UK Budget fails to mention pensions flexibility

The new coalition does not seem ready to consult on introducing measures to make private pensions more flexible, according to one expert.

This could encourage a number of expats who still own a property in the UK, in particular those aged over 55 years, to take out a lifetime mortgage, which could provide them with a tax-free cash lump sum taken from the value of their property.

Following Tuesday's Budget in the UK, independent policy adviser Dr Ros Altmann noted that there was no news on increasing the flexibility of private pensions.

“The coalition has talked in the past about trying to make pensions more attractive, by allowing people to make some withdrawals, rather than forcing them to keep the money locked till retirement” she said.

“But it seems that they are not even ready to review or consult on this yet. It would be a potentially attractive measure to encourage more pension savings in the first place.”