Pru attacks 'extreme' tax on unused pension funds

Proposals put forward last week by the Treasury would increase the single flat-rate "recovery charge" on unused lump sums remaining on death from 35% to around 55%. Death benefits for those who die before age 75 without having accessed their pension savings will remain tax free. Prudential's deputy chief executive, Barry O'Dwyer, broadly welcomes the wider Government plans to overhaul the income options available to investors at retirement, including removing the requirement to annuitise by age 75. But he says the move to raise the on-death charge "lacks rationale" and will be felt...