The good news is that there will be more flexibility in how retirement income can be taken. I think this means that we might see more people split their funds between an annuity and unsecured pension. The annuity will provide a guaranteed income level, the USP will allow top ups and any surplus funds to be returned to the estate (subject to tax).
The bad news is that the tax rate on death in drawdown is increasing from 35% to an eye watering 55% but death benefits will not additionally attract IHT.
Finally the very disappointing news is that no real statement has been made about making OMO more transparent. I cannot believe that this national scandal which has been exposed by successive people and journalists for years is still not being adequately dealt with. Come on HMT and FSA – wake up.
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