Budget help for savers and pensions
Chancellor George Osborne showed savers a little ankle at the start of his speech. But it took nearly an hour for the Chancellor to back up his earlier tease, when he announced Individual Savings accounts limits are to rise to £15,000 in July. What's more, the labyrinthine rules around what proportion of their savings can be held in cash and shares are to be swept away.
Pensioners with savings are to benefit from the issuing of a new pensioner bond by national savings which will see them earn an estimated 4% for three years. The amountthat can be put into premium bonds will rise to £40,000, then £50,000.
Longer term, though, probably the biggest changes relate to the 13m Britons who have a defined contribution pension – also called a money purchase scheme. Smaller pension pots will be easier to cash in and those wanting in retirement to take more of their pot as a cash lump sum will be taxed at their marginal rate.