Blog: 'Put simply drawdown is not the right solution for everyone'

Blog: ‘Put simply drawdown is not the right solution for everyone’

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George Osborne's latest pensions taxation policy equates to ‘a mighty big shove into drawdown', writes Rachel Vahey…

The industry was still reeling from the Budget announcements for pensions reform, when earlier this week the Chancellor once more waded in with changes. From next April payments from drawdown funds on death of the member will be tax-free if the person dies before age 75, and subject to either marginal rate of tax or 45% if the member was 75 or older. This move, of course, appeals to many people's basic instinct to try to leave as much money as they can to their family. Even though the Treasury hurriedly reassured the industry that value protection paid out on death of an annuitant wil...

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