{"id":195303,"date":"2025-10-07T14:34:07","date_gmt":"2025-10-07T14:34:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/195303\/"},"modified":"2025-10-07T14:34:07","modified_gmt":"2025-10-07T14:34:07","slug":"aegon-second-50-highlights-dangers-of-snap-pension-decisions-based-on-budget-speculation","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/195303\/","title":{"rendered":"Aegon Second 50 highlights dangers of snap pension decisions based on Budget speculation"},"content":{"rendered":"

The latest Second 50 research from Aegon UK<\/a> has shown the UK population remains strongly in favour of a gradual transition into retirement, rather than a \u2018hard stop\u2019 where they stop work all together and enter \u2018full retirement\u2019.\u00a0<\/p>\n

Less than a quarter (24%) of workers expect to stop working all together. By contrast, a clear majority of\u202fworkers expect to either change the way they work (43%), keep working as they currently do (15%), or move into a new role (9%).\u00a0<\/p>\n

Steven Cameron, Pensions Director at Aegon\u00a0said: \u201cToday\u2019s retirees are approaching retirement very differently from previous generations.\u00a0\u00a0<\/p>\n

\u201cWhile historically, it was common to follow a \u20199 till 5\u2019 working life right up until a retirement age set by the employer, nowadays people have much more flexibility. But fears over Budget changes to pension rules could be discouraging a more flexible approach.\u00a0<\/p>\n

\u201cOne of the most striking trends in recent years has been the increased appeal of a \u2018transition\u2019 into retirement. This can take different forms \u2013 such as gradually reducing working hours, which can create a better work life balance. Pension freedoms also mean individuals can make up the shortfall in earned income by initially taking a small income out of their pension pot.\u00a0<\/p>\n

\u201cAegon\u2019s latest Second 50 research shows this preference for a transition into retirement remains very strong. Less than a quarter (24%) want a \u2018hard stop\u2019 retirement.\u00a0<\/p>\n

\u201cBut it\u2019s hard to plan such a transition unless the rules and tax treatment of pensions are stable. This year, like last, we\u2019re seeing some people making snap decisions over their lifetime pension savings for fears of possible changes to pensions tax rules in the Budget. Some are taking their tax-free cash lump sum earlier than they would otherwise have, often accompanied by starting to take a retirement income sooner, something they could later live to regret.\u00a0<\/p>\n

\u201cWhile not commonly known, many pensions allow individuals to take their tax-free cash in instalments over a number of years. This, alongside drawing out only as much income from your pension as you need at the time, might be the best approach, including reducing your tax bill. But planning this way isn\u2019t helped if future rules are uncertain.\u00a0<\/p>\n

\u201cPension flexibilities and the ability to transition into retirement can mean more individuals continue in paid employment, perhaps in a reduced capacity, for longer. This can be good for the individual, both financially and for their wider wellbeing. The Government should also see this as a positive, as people remaining economically active for longer should boost UK economic growth.\u00a0<\/p>\n

\u201cWe urge this and any future Governments to prioritise creating a stable environment that provides people with the confidence to plan long term for their hard-earned retirement.\u201d\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"The latest Second 50 research from Aegon UK has shown the UK population remains strongly in favour of…\n","protected":false},"author":2,"featured_media":195304,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,133,131,132],"class_list":{"0":"post-195303","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-finance","12":"tag-personal-finance","13":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/195303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=195303"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/195303\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/195304"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=195303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=195303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=195303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}