The government's response to a public petition asking for the removal of the 70% tax charge on leftover Alternatively Secured Pension Funds, is a clear signal retirees need to be more innovative, claims Living Time.
Kim Lerche-Thomsen, chief executive of Living Time which in conjunction with AIG Life claims to offer an alternative to traditional lifetime annuities and income drawdown, says the government’s determination - that pension money is taken as income through a lifetime annuity - may be obscuring the flexibility already built in to the rules regarding death benefits. In its response to the petition, which closed on 31 March with 3,949 signatures, the Prime Minister’s Office repeated that ASP was designed specifically for those with religious objections to mortality cross-subsidy, and as a res...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes