Adrian Boulding, Pensions Strategy Director, Legal & General commenting on the announcement in the Autumn Statement on annuities being tax-free.
03 December 2014
“We welcome the move announced in the Autumn Statement for a spouse’s pension annuity to be made tax-free, so this is consistent with the new rules for income drawdown. However, maintaining the demarcation age at 75 seems extremely unfair as this effectively means that a widow or widower is penalized just because their partner died after 75.
We need clarity on when and how the tax-free proposal would apply.
However, for those were it will apply, we believe this would be very popular and may lead to an increase in the number of customers who arrange their annuity on a joint life basis in the future.
And, post the Budget changes and today’s announcement it is more important than ever, that customers consider seeking financial advice before making any decisions, so they are aware of the full implications of the choices they make.”
If you are interested in discussing this further with Adrian or the team here, then please do get in touch.
For more information please contact:
t: +44 (0) 1737 375369
m: +44 (0) 7788 926790