Budget 2015 - what you need to know

Help to buy ISAs, pensions and tax

Budget 2015

After all the anticipation, did Budget 2015 deliver? As usual, it depends on who you are. This time it was savers who bagged the most rabbits from the hat, along with first-time buyers. Businesses also got a considerable boost, and anyone who regrets a recent annuity purchase will now get the chance to reconsider. Highlights included: 

• A new help-to-buy ISA, where every £200 saved for a deposit attracts another £50 from the government
• 5 million pensioners who've bought annuities will get the option of cashing them in (potentially triggering a rush for advice) 
• A new personal savings allowance, with no tax on the first £1,000 
• A new personal savings allowance, with no tax on the first £1,000 of interest earned
• A reduction in the lifetime limit for a pension pot to £1 million from April 2015

With all the new changes, consumers will be on the hunt for advice.

Two-thirds of savers plan to seek advice 

New Model Adviser revealed this week that most savers reaching retirement are planning to seek advice before accessing their pension.  Since the launch of Pension Wise, debates over the difference between guidance and advice have intensified, and many advisers have commented that Pension Wise could actually hinder the advice service.  But the government's scheme could also deliver advantages to the advice industry. Karen Barrett, chief executive of unbiased.co.uk, points out that 'it will be a service for people to approach in the first instance', and sees opportunities arising from this. You can read more on the comparisons of both services in the FT here and here

We want to hear your views: Do you think Pension Wise is good or bad for the advice industry?  Have your say in our latest LinkedIn discussion.

Putting a value on advice

Thanks to all of you who took part in our Value of Advice survey. The response rate was great and your answers are helping us to build a detailed picture of the current advice landscape.   In the meantime, why not take a look at last year's campaign here. 

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