Lump sum payouts to be influenced by annuities - Bee

Speaking at the SOFA Update Conference in Birmingham yesterday, head of pensions at Scottish Life, Steve Bee says the Government has provided an example of a man aged 60 with an earnings cap of £70,000. A conversion rate of 20:1 will provide an earnings figure of £1.4m, which the Government has amended to £1.5m, to become £1.8m at a later stage. After 6 April 2006, people will have a pension cap of £1.5m in their pension pot, with any further funds extending that amount to be taxed at 55%. According to the Government, the new regime will apply to both final salary and money purchas...