Review legacy pensions now to avoid 'future death benefit complaints', advisers warned

Carmen Reichman

Standard Life is urging advisers to review their clients' legacy personal pensions to avoid their beneficiaries being forced to buy an annuity when they inherit the pots and avoid potential future negligence claims.

The provider pointed out not all occupational or personal pension schemes offer death benefit flexibility, meaning for many taking an annuity will be the only option upon inheriting a pension. It also said failure to check over policies from the pre-self invested personal pension (SIPP) era - SIPPs turn 25 this year - could lead to future client claims against advisers. The government reformed the pension income market over the last year to allow savers unfettered access to their pensions from age 55. As part of the reforms the government changed inheritance tax rules on pensions, ...

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