Winterthur Life has joined the attack against the government over tax changes to Alternatively Secured Pensions, although Standard Life has warned such outbursts may be counter-productive.
The latest row over ASP follows the publication in December of a Treasury paper on ‘The Annuities Market’ which set out the government’s policy on the decumulation side of pensions, including the issue of ASP. Changes proposed by the government include a minimum income of 65% of the annual amount of a comparable annuity (for a 75 year old), a maximum annual withdrawal rate of 90%, and the removal of the transfer lump sum death benefit option from the authorised payment rules meaning they will attract payment charges of up to 70%. However Mike Morrison, pensions strategy director at Wint...
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