There’s relief this week for around 320,000 people. Those who retire with defined contribution pension savings will no longer have to worry about their pension savings being taxed at 55% on death. This was addressed to the conservative party at yesterday’s conference.
Tom McPhail, head of pension’s research, was quoted saying: “The change is likely to encourage investors to take maximum possible advantage of their pension contribution allowances.
“This means that people can now build up their pension funds, knowing they can not only draw on their savings without current restrictions from the age of 55, but also pass on any unused savings to beneficiaries’ tax free on death.”