Neil MacGillivray weighs up the tax charges on various retirement vehicles.
There is no doubt that enabling a scheme member to take benefits on or after age 75 provides a greater degree of flexibility in terms of retirement planning. Increasing the choices available as to how pension benefits are taken, particularly at a time when the prospect is that annuity rates will remain low, has to be seen as a positive move. The major downside however is a 55% recovery charge on death of the member on lump sum payments made out of all crystallised funds and un-crystallised funds for members aged 75 or over, is seen by some as excessive. However, is a tax charge of 55% re...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes