No rethink of pension freedoms tax despite £37m in overpayments

HM Revenue & Customs (HMRC) has said there will be no rethink of controversial emergency taxes on the pension freedom withdrawals made by millions of savers, despite pressure from the industry to change its approach. The current rules require providers to charge emergency tax the first time someone uses the pension freedoms to access their pension savings. As a result, …

Retirement ProfessionalsNo rethink of pension freedoms tax despite £37m in overpayments

Scam fears prompt new parliamentary inquiry into pension freedom

Concern over the rise in scams is among the reasons prompting a new Work and Pensions Select Committee inquiry into whether the pension freedom reforms have achieved their objectives and if policy changes are needed. The committee, which is chaired by Birkenhead MP Frank Field, said this would follow up an inquiry it conducted shortly after the reforms were introduced …

Retirement ProfessionalsScam fears prompt new parliamentary inquiry into pension freedom

Money Purchase Annual Allowance (MPAA) reduction confirmed

The government has confirmed it will implement the reduction of the money purchase annual allowance (MPAA), originally due to take effect in April, retrospectively. In the second version of the 2017 Finance Bill, out last Friday, the Treasury said savers who have accessed their pension will see their annual tax-free allowance cut from £10,000 to £4,000 for the 2017/18 tax …

Retirement ProfessionalsMoney Purchase Annual Allowance (MPAA) reduction confirmed

Drawdown regrets for savers ‘putting pension freedoms at risk’

Drawdown regrets for savers are putting pension freedoms at risk. Savers who invested in drawdown are unhappy with their choice while others admit they did not understand the risks before buying, new research* from MetLife shows. – More than one in five admit they did not understand the risks of conventional drawdown and more than one in 10 are unhappy …

Retirement ProfessionalsDrawdown regrets for savers ‘putting pension freedoms at risk’

Hargreaves Lansdown – Bring back ABI annuity window to avoid ‘misselling scandal’

Tom McPhail – Head of retirement policy at Hargreaves Lansdown has voiced concerns and called for the Association of British Insurers (ABI) to bring back its comparison annuity window, to avoid ‘another misselling scandal’. The investment and advice provider says because of the wide disparity between best and worst annuity rates, all providers should submit their rates to public scrutiny. …

Retirement ProfessionalsHargreaves Lansdown – Bring back ABI annuity window to avoid ‘misselling scandal’

Gov’t cancels plans for secondary annuity market

The government has decided to cancel plans to create a market for secondary annuities. A statement on the Treasury’s website explained the reason for the U-turn just 6 months before it was due to be implemented. The government said, “It has become clear that creating the conditions to allow a competitive market to emerge could not be balanced with sufficient …

Retirement ProfessionalsGov’t cancels plans for secondary annuity market