Warning annuity reform only benefits wealthy

Amongst the government's proposed reforms for annuities is a 55% tax on undrawn pension funds at death. In its response to the consultation, Hargreaves Lansdown slammed the 55% rate, saying it would penalise lower earners and discourage saving, and "encourage investors to strip out their flexible drawdown rather than maintaining their fund to pay themselves a regular income". It recommends bringing this rate down to 45%. Pension policy adviser Ros Altmann also warns the government's proposals will remove the requirement to buy an annuity from age 75, but only for the top 1% or so of p...