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Budget 2014: Osborne to bridge gap with 'right to advice'

Budget 2014: Osborne to bridge gap with 'right to advice'

Chancellor George Osborne is making £20 million over the next two years to counter the growing advice gap, as part of a broader move to help savers in this year's Budget.

As the chancellor abolished restrictions on pension drawdown and said 'no-one has to buy an annuity', he added that those with defined contribution schemes would be offered free impartial face-to-face advice - a move that will be enforced by law.

Osborne said he will work with consumer groups to develop the 'right to advice'.

The Budget stated: 'The government will ensure that, from April 2015, all individuals with defined contribution pension pots are offered free and impartial face-to-face guidance at the point of retirement and will make available up to £20 million in the next two years to develop this initiative.'

Osborne has also opted to cut the income required for flexible drawdown from £20,000 to £12,000. He said the cash limit for taking a lump sum out of the benefit will be increased to £10,000 from the £2,000

The total pension savings can be taken as a lump sum has also been increased to £30,000.

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