How much tax is too much?

There is no doubt that enabling a scheme member to take benefits on or after age 75 provides a greater degree of flexibility in terms of retirement planning. Increasing the choices available as to how pension benefits are taken, particularly at a time when the prospect is that annuity rates will remain low, has to be seen as a positive move. The major downside however is a 55% recovery charge on death of the member on lump sum payments made out of all crystallised funds and un-crystallised funds for members aged 75 or over, is seen by some as excessive. However, is a tax charge of 55% re...