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Savers, pensioners and first-time buyers among the beneficiaries of Budget 2014

The 2014 Budget has brought pensioners and savers to the forefront, with the Chancellor announcing new plans to help the groups most hit by lower interest rates.

Retirement Pension Investments

The 2014 Budget has brought pensioners and savers to the forefront, with the Chancellor announcing new plans to help the groups most hit by lower interest rates.

The Chancellor’s biggest change came with the announcement of a New ISA, merging cash and share ISAs into a single entity with an annual tax-free savings limit of £15,000, coming into effect from July 1st.


Mr Osborne also went further to help pensioners, revealing that pensioners will soon be able to cash in as much or as little of their pension pot as they would like. The changes allow pensioners to move away from the annuities that were previously the only available option.


Also announced was a new Pensioner Bond savings scheme due to be launched in January. Available to all those aged 65 or over, the bond will offer interest rates of 2.8% for one-year bonds, whilst a three-year bond will pay out 4%.


The impact for pensioners was described by the Chancellor as being “the most far-reaching reform to the taxation of pensions since the regime was introduced in 1921.”


The Budget also saw a shift in the starting point for the higher rate of tax, with an increase from £41,450 to £41,865 next month, followed by a 1% below inflation increase to £42,285 next year.


The property market also saw further changes, with the government extending the current Help to Buy scheme until 2020, aiding prospective homeowners in the purchase of their first property.

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