Over the next 12 months the pensions and retail investment sectors expect to see some of the most sweeping changes for a generation following one of the most radical Budgets in recent years.
Financial Planners have been busily assessing the changes and how these will affect their clients' strategies and they told the May edition of Financial Planner magazine what they think. 
See lower part of article for planners' views.
When George Osborne took to the dispatch box in the House of Commons to announce his fifth Budget few Financial Planners expected such an overhaul.



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Yet, Mr Osborne pulled out more than one of the much mentioned 'bunnies out of the hat' - as surprises are referred to on Budget day – not least his declaration that from now on nobody would be forced to buy an annuity again.
The changes to pensions are set to take effect from April 2015 – giving Financial Planners and the sector as a whole months of serious examination and analysis ahead.
Mr Osborne's announcement that retirees can take as much of their pension in one go as they wish in future and they will not have to buy an annuity comes shortly after the FCA published a damning report on the annuities market, saying it had failed consumers.
A number of pension experts, Financial Planners and other professionals in the sector applauded the Chancellor's retirement overhaul but some annuities firms saw their share price crashing immediately after as he tool the wind out of their sails.
Mr Osborne said while the Government had already introduced flexibility in pensions "most people still have little option but to take out an annuity, even though annuity rates have fallen by a half over the last 15 years."
He called the tax rules around these "a manifestation of a patronising view that pensioners can't be trusted with their own pension pots." He added: "I reject that. People who have worked hard and saved hard all their lives, and done the right thing, should be trusted with their own finances.
"And that's precisely what we will now do. Trust the people."
He announced the Government would:
• Cut the income requirement for flexible drawdown from £20,000 to £12,000
• Raise the capped drawdown limit from 120 per cent to 150 per cent
• Increase the size of the lump sum small pot five-fold to £10,000
• Almost double the total pension savings consumers can take as a 'trivial' lump sum to £30,000
All of these changes came into effect on 27 March.




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Mr Osborne said: "These measures alone would amount to a radical change. But they are only a step in the fundamental reform of the taxation of defined contribution pensions I want to see.
"Pensioners will have complete freedom to draw down as much or as little of their pension pot as they want, anytime they want.
"No caps. No drawdown limits. Let me be clear. No one will have to buy an annuity."
Steve Gazzard, chief executive of the IFP, said: "These changes mean that ongoing Financial Planning advice provided by Certified Financial PlannerCM professionals and by Accredited Financial Planning FirmsTM has never been more important for those consumers approaching retirement.
"The Budget changes give consumers the ability to access their accumulated savings and investments much more flexibly in future. However, the need for them to understand the long term implications of such decisions is essential."
Therefore, the importance of Financial Planners to provide sound advice is more important than ever, the IFP said.
(See also page 6)
The Chancellor also raised the annual Isa limit to £15,000 and proposed the merger of cash and stocks and shares Isas. It will now be possible to switch funds from one form of Isa to the other. A new pensioner bond is being created. Up to £10bn of these will be issued with a maximum of £10,000 saved in each.
The junior Isa limit will also go up to £4,000. The Isa changes take effect from July this year.



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Key Dates
27 March 2014:
- Finance Bill 2014 published
- Income requirement for flexible drawdown cut from £20,000 to £12,000
- capped drawdown limit raised from 120% to 150%
- size of the lump sum small pot increased five-fold to £10,000
- total pension savings able to be taken as a lump raised to £30,000

April 2014
Personal tax allowance rises to £10,000

June 2014
- Premium bonds - lifting the cap for the first time in a decade from £30,000 to £40,000.

1 July 2014
- The overall NISA limit for 2014-15 will be £15,000, an increase of £3,480 from the 2013-14 limit.
- The NISA will also offer you the option to save your whole NISA allowance of £15,000 in cash, stocks and shares, or any combination of the two.

July 2014
Finance Bill expected to receive Royal Assent

January 2015
- Pensioner Bond introduced - issued by National Savings and Investments, open to everyone aged 65 or over.

April 2015
– pension reforms take effect
– No need to buy an annuity anymore
– 55% tax on withdrawals scrapped and replaced with tax at normal marginal tax rates – as with any other income.
– personal tax allowance rises to £10,500

2015
Premium bonds – lifting of the cap to £50,000



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Michael Smith, co-owner and director of IFP Accredited Financial Planning FirmTM, Chamberlyns.

This Budget is extremely interesting for Financial Planners and I've no doubt will require rapid understanding and personalised interpretation on behalf of clients, many of whom will be directly affected.
There are lots of positive elements in respect of the planning opportunities that will now come into play for clients of Financial Planning firms, including raising of the higher rate tax threshold, the merging and raising of the annual ISA allowance and the huge changes to the way benefits can be taken from pensions.
The budget was so fast-paced and full of not just changes, but frankly, bombshells, I'm struggling to see anything initially negative from a financial planning perspective. Obviously, some changes, particularly around pensions, have the potential to be dangerous, but this is where sound planning and advice will be important.
This Budget will throw up several potentially complex Financial Planning issues which will need to be considered with clients over the coming months, including in the areas of tax, retirement planning, saving and investing.
It would have been nice to see a return in the availability of Index-Linked National Savings Certificates, as this would have provided significant help to savers, regardless of age.
I give the Chancellor 9/10.

James Thompson, director, Taylor Patterson
This is the biggest set of changes we have seen in the financial planning industry over the last decade if not longer. The Chancellor has made material changes that will not just affect financial planning strategies but will completely change them. For example, the way an income can be drawn from retirement assets could potentially be reversed as a result of changes announced today.
The budget illustrates that the Chancellor wants to make it easier for people to draw an income from their pension. Previously there have been caps in place, however it is expected these will be relaxed and potentially removed all together. Anything that provokes change is generally positive as it encourages people to seek sound financial advice.
The Chancellor announced that everyone will have access to free financial advice – but what will this mean for the industry and who will it be providing the financial advice?
The Chancellor should have addressed the amalgamation of national insurance and income tax contributions. This would mean that there would only be one tax on your income as national insurance contributions currently act as a hidden tax on earnings.
As a financial planner I would rate this year's budget at 8/10.



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Ian Shipway, ex-IFP President and current Chair of The Investment Committee, Succession Advisory Services.
I rate this highly as a budget for Financial Planners. In reducing some of the legislative restrictions and providing greater flexibility, particularly in the pensions arena, there will be an increased requirement for advice. Indeed mandating access to advice at the point of retirement should increase the opportunities for consumers to interface with professional planners.
The increase in flexibility as to how the benefits from a pension scheme are taken provides perhaps the most intriguing planning opportunities. To some degree it seems the boundaries between pension saving and investment into an ISA are blurring, which will provide significant opportunities for professional planners to manage income streams and tax liabilities most efficiently.
Although the increase in flexibility is to be welcomed, it does come with dangers. At present pension savers are to some degree protected from making catastrophic decisions by a framework of rules that restrict access to capital tied up in a pension. In general the population does not have sufficient capital reserves, and if much of what they do have can be unlocked with ease there is a danger that some years ahead living standards might be compromised.
On the whole a good budget. 8/10

Mike Morrison, AJ Bell's head of platform marketing.
I rate this Budget as excellent for Financial Planners. The changes to tax allowances are good and the changes to ISAs positive.
Standing out were the pensions bombshells - no need to buy an annuity, flexible drawdown MIR reduced to £12,000pa - although why flexible drawdown will be needed is questionable.
Reduction on tax on death from 55% to marginal rates is good. The big one is the freedom from age 55 to take the whole fund with just the first 25% tax free is very radical will mean planners will need to plan sustainability of funds target date funds for investment strategies could be interesting. Underwritten annuities will be an investment choice.
The negative elements - some clients will undoubtedly run out of money and what about inheritances if individuals can spend all their pensions?
What did George Osborne miss? He could have done something on LTA as putting more money in will be more important? Also, who will pay for the impartial advice on retirement?
I give the Chancellor 10 out of 10 for surprise factor!

Andrew Roberts, partner at SIPP and SSAS provider Barnett Waddingham.

The increase in ISA allowances and removal of capped drawdown will allow Financial Planners to take a more holistic approach to accessing income in retirement, without having to worry about sometimes artificial limits. Financial Planners will need to advise on the appropriate amount to draw from pensions without reference to a maximum rate.
The two stage process of amending income drawdown seems a little unnecessary – would be better just to introduce the uncapped drawdown from April 2015. Financial Planners may also be worried about plans for free face-to-face guidance.
There was no shock removal of the tax-free cash sum on retirement or restriction to tax relief on contributions and there seemed to be a strategy for a long-term pensions. This is good news, provided a new government doesn't tinker.
Removing the Lifetime Allowance at least for basic rate payers (Skandia's suggestion in the run up to the budget) would have been a neat way of simplifying pensions for the majority, as providers could easily set out in literature parts that only apply to those who have paid higher rate tax.
I'd give the Chancellor 8 out of 10