Back in spring of this year, Chancellor George Osborne announced his plans for a ‘radically more flexible ISA’. By this, he meant introducing new rules which will mean that in future, ISA savers will now be able to withdraw money from their accounts and put it back in at a later date without it accosting for their yearly ISA allowance.

This is set to override current rules, which do not allow savers to replace withdrawn cash in their ISA without exceeding the annual limit. Not only this, but with new regulation, ISA holders will be able to withdraw cash as many times as they wish from the ISA, whilst holding onto the £15,240 limit which came into force on April 6 2015. As a result, savers who want access to the cash in their ISA are not penalised if they want to put money away later on in the tax year.

Whilst initially these new rules were meant to apply solely to cash ISAs, in July’s Summer Budget report, it was announced that they would be extended to stocks and shares ISAs, proving to be great news for more ISA savers and helping to offer even more flexibility to a greater range of investors.

The Summer Budget also revealed that despite an intended launch date of autumn 2015, it has now been delayed until April 2016. Despite a longer wait, this does mean that ISA savers now have more time and opportunity to seek financial advice on making the most of their ISAs and other investments.

Aside from the increased flexibility and contributions that ISA holders are now able to make, Osborne also announced the launch of a Help to Buy ISA. This new scheme is set to officially take off on 1 December 2015, and is designed for first time buyers. It will mean that those looking to get on the property ladder will be able to save up to £200 per month into the ISA, and the government will provide an additional 25% of the money saved when it is put towards a deposit for a property.

Ultimately, these increased ISA flexibilities are very positive changes for savers – it offers more choice for their money, meaning they can gain access to their cash as and when they wish, should it be required. The introductory Help to Buy ISA will also encourage first-time buyers to save thanks to the governmental incentive.

As a result, it has never been more important to speak to a financial adviser before making decisions about your individual savings accounts, and The Money Map can help by simplifying technical language, offering professional advice on investments, and steering you to ensure you make the right financial choices. We specialise in providing thorough, cost-effective advice on investment options including New Individual Savings Accounts (NISAs), investment trusts, unit trusts, Open Ended Investment Companies (OEICs), endowment policies, investment bonds, and annuities, and speak in plain English to ensure you gain the good financial understanding that you deserve.

With various changes coming into play with ISAs this year and into 2016, it’s important that you stay informed in order to best invest your finances. For more information on these changes and ISAs, book your free consultation with one of our experienced advisers by calling 0800 848 8250, email enquiries@themoneymap.co.uk, or fill out our simple contact form.

This year, we have seen further changes made to the unprecedented announcement at 2014’s Budget in which the coalition government announced radical new legislation that saw the largest pension reformation for the first time in nearly 100 years. This landmark move was said to provide greater freedom for both pension savers and employers, as well as “[enabling] a new generation of better, fairer schemes” (gov.uk).

So – what do these changes entail? This exciting new move means that not only is making pension contributions more invaluable than ever – for the first time in April 2015, the government has granted those over 55 the freedom to use their defined contribution any way they like. This means that it is now possible to freely withdraw any amount of income instead of investing in retiring and buying an annuity to provide secure income for retirement from their pension fund. It also allows pension holders to pass their pensions to anybody, and beneficiaries can inherit them at a lower tax rate – an effective inheritance tax planning tool.

Effectively, the tax rules have been simplified to offer pension savers more freedom in accessing their pensions. The possibilities for withdrawing income include flexi-access drawdown, in which as much of the pension can be withdrawn as is desired, with up to 25% tax free if not previously used for drawdown; uncrystallised funds pension lump sum (UFPLs), whereby a one-off or several lump sum payments may be taken (25% tax free); and a traditional annuity, paying a guaranteed income for life from a pension fund.

It was also announced that the lifetime allowance of pension funds is to be decreased from £1.25 million to £1 million from April 2016, the third consecutive reduction to address the quantity of tax relief going to higher earners. This brings questions of whether or not to pause contributions in order to achieve a more protected lifetime allowance, aimed particularly at individuals who already have substantial retirement savings – therefore, considerably more financial planning is required.

Although the legislation change appears primarily positive, the new pension choices are complicated. It is essential that the following points are considered: where to invest your money, the quantity of sustainable income required, whether or not to buy an annuity, whether or not to invest in a drawdown product, and the tax implications of withdrawal.

It has never been more important to speak to a financial adviser before making decisions about your retirement, and The Money Map can help by simplifying technical language, offering professional advice on pensions, and steering you to ensure you make the right financial choices. We specialise in providing thorough, cost-effective advice on retirement options including annuities, drawdowns, triviality, and small pension pots, and speak in plain English to ensure you gain the good financial understanding that you deserve.

For more information on your retirement options, book your free consultation with one of our experienced advisers by calling 0800 848 8250, email enquiries@themoneymap.co.uk, or fill out our simple contact form.