Need to Reform UK’s Savings System

Keeping in mind the complexity of the present economic structure, the Government has decided to modify it all over again.

With new plans, citizens will be persuaded to invest more and to save their money for their future requirements and to meet the unforeseen risks.

“People should be able to access pensions before retirement”, said the Centre for Policy Studies, as part of a raft of proposals to reform the UK savings system.

The new system will offer the people to take the amount of their pension even before they retire which basically means that they will be allowed to withdraw 25% of the total amount of their pension and combine it with Individual Savings Account.

Earlier, the people were under an obligation to buy annuity when they attained the age of 75. But under the new system, they can withdraw their own belongings when they need them.

Another big noticeable change is that the annual limit for the children under the age of 16 to invest in mini-Isa has been reduced to £1,200.