The aim was to reduce the complicated patchwork of legislation built-up by successive administrations which were seen as acting as a barrier to the public when considering retirement planning.
The new regime introduced considerable freedom in the tax relievable contributions for pension schemes and the assets in which they may be invested.
Broadly the new regime allowed considerable freedom in the tax relievable contributions to pension schemes and the assets in which they may be invested.
The rules were designed to provide: In addition to these changes, employees aged 50 could withdraw up to 25% of each of their pension funds as a tax–free lump sum when it comes into payment, whether or not they continue to work.
[3] This adjustment aimed to provide individuals with more flexibility in managing their retirement finances while aligning with evolving demographics and changing work patterns.