Great post SteveC, Myth #3 was the point I was trying to make in my earlier post. Pension legislation, particularly the latest changes, is an absolute minefield now and it will catch people out, more than the tiny % quoted by Osborne. We ( the mugs who work hard for a decent salary and pay tax via PAYE) are being shafted again. Can't see any of this bothering the very high earners who we know have ways of minimising the tax they pay (by dubious means) - and this is coming from a long time Tory voter!
I personally will be in real danger of breaching the new LIfetime Allowance Limit of £1.25m at 55. Sounds very grandiose, but I am not particularly wealthy, just fortunate to have a decent Final Salary scheme. My pension planning, along with my SIPP, which sits alongside my DC pension, is now being called into question. I think my next move is to stop paying into my SIPP and to plough as much as possible into my wife and my S&S ISAs. What's the betting that the next move is to tax the 25% pension tax free lump sum?