Pensions

(asked on 31st January 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Office of Tax Simplification's publication of May 2018 entitled Savings income: routes to simplification, whether he has made a recent assessment of the potential merits of its recommendations on (a) reviewing guidance relating to pension withdrawals and (b) the use of the emergency take code for personal pension lump sum withdrawals.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 3rd February 2022

The Government ensures that all savers have access to free, impartial guidance as they approach retirement age through MoneyHelper, provided by the Money and Pension Service (MaPS). MoneyHelper Pensions provides guidance on all areas of UK pensions to the public regardless of age. Information relating to the tax implications of pension withdrawals is available on the MoneyHelper website, and is covered in Pension Wise appointments.

The use of PAYE for those who access pensions flexibly operates as expected for many individuals. Where tax is overpaid tax because of an emergency tax code, individuals can contact HMRC and will be repaid within 30 days. Moreover, anyone who does not contact HMRC will be automatically repaid following the end of the tax year. This approach helps to minimise the number of unexpected tax bills for those who access their pension savings flexibly.
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