A lot of people are still clinging to the hope a form of pension term assurance will continue after the Budget, but there is a strong possibility the product will be scrapped and it may be wise to expect the worst.
In the immediate aftermath of the PTA u-turn in December, it was reported the Treasury had sent a fax to providers saying it was “appalled” at the take-up of life cover with tax relief, while the Pre-Budget report itself stated the government had become aware the products were being offered as standalone products, which undermined pensions principles. Providers may stamp their feet and say they tried to make it clear prior to the A-Day changes that PTA would be sold as a standalone product, but there were others who seemed to realise the Treasury may have made a mistake and who were wary...
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