Concerns have been raised about the future of pension term assurance, following comments from Ed Balls stating the government "will act" when a regime is not in accordance with its pensions tax relief principles.
Speaking at a National Association of Pension Funds (NAPF) conference, Balls states: “We will need to respond to circumstances which risk taking us away from [the pensions tax relief] principles – or when the market seeks to identify loopholes in legislation that permit behaviours that were clearly outside the original intentions of that legislation.” The principles Balls refers to include not using pensions tax relief to support pre-retirement income, asset accumulation and inheritance. He adds: “We do not want to stifle innovation or prevent the industry from responding to new chall...
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