Pension harvesting back in fashion

Everywhere you turn pension pundits, consumer bodies, and research institutes are discussing why the current pension tax rules don’t work as well as they could for those taking pension income. The Conservatives are now set to wade into this discussion, by tabling in the House of Lords an amendment to the Pensions Bill calling for the end of compulsory annuitisation. There is no doubt that the current tax rules are in need of an overhaul, but it would be wrong to underestimate the role annuities play in retirement planning as longevity insurance. They are, if often seems, the last guarant...