14th March 2016 Anne-Marie Winton in Pensions Expert on death tax problems for dependents
Anne-Marie Winton gives her opinion in Pensions Expert around the proposed consideration for the government to allow pension pots, of those who die before reaching 75, should be transferred out. Currently, the dependents can take the fund tax free, buy annuity or continue in the scheme; however, they cannot transfer away from the scheme to access drawdown from somewhere else.
However, Anne-Marie said action was unlikely to be taken.
“The government’s only going to care about things that save it money or get more tax out of people… this is a problem for the [inheritor of the pot].”
She added employers were similarly unlikely to take action.
“[They] don’t want to allow huge amounts of flexibility within schemes because it’s an administration cost,” she said. “What employers want is people not in the scheme, they want them to go.”
She added: “I’m not sure who’s going to care enough to talk about it… trustees don’t tend to end up asking this question. It would have to come in as a member dispute.”
Read the full article in Pensions Expert here.
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