After Gareth highlighted some of the key announcements from this year’s Budget, many of you took the time to tell us how you feel it affects your finances. Here are your best bits.
Sue told us she was pleased that the Chancellor’s Budget will help savers:
‘At last something for those who have worked hard, saved and put some money away for their retirement. It has not been easy.’
But Hilary has a less than rosy view of the changes:
‘Only thing in it for us as far as we can see is the freeze on fuel hike. Have already taken out an Annuity so all my pension is lost if I die too soon. I calculate I will have to live to 90 to get all my money back, let alone any interest on it. Don’t drink beer or do bingo. Savings rates are so small under the bed looks good, cannot afford to put £15,000 into an Isa and their rates are even less.’
But there was a general positive feeling towards the pension changes. Malcolm R said it was:
‘A great move to give us the choice. We should all be responsible for our finances and how best we use the money we have saved for retirement.’
Roger Furze, who gets our Comment of the Week, told us:
‘The pension companies now have an incentive to offer better deals if they want our funds to be left with them. Sadly though I think too many people will be tempted to take the money out to pay the mortgage off, pay debts, or take a holiday. A decision that they will live to regret, if they then go on to live a long life.’
And Shaun C is nervous the pension proposals won’t stand the test of time:
‘Personally whilst I welcome to relaxing of the pension system, I am fairly sure they will have to overturn this decision once the dust has settled. The finance houses, insurance companies and banks are destined to lose vast amounts of “usable funds” and if this is the case, they will not allow it, despite the obvious benefits for the average pensioner.’
And there was a little cheer in the savings corner, particular when it comes to Isa allowances as Herbert Edmonds told us:
‘The increase in the ISA allowance is welcome. Why not complete the job and make ISAs inheritance tax exempt? The increase in Premium Bond subscription will also be welcome for those who have cash deposited in low interest paying savings accounts.’
Do the comments above reflect your views of the 2014 Budget? What else could be done to improve your financial lives?