Today George Osborne will announce that the 55% tax charge that often applies on the payment of any remaining pension savings following death will be abolished.
Commenting on the announcement, Simon Nicol, Pension Director at Broadstone, said:
"Members of generous final salary pension schemes approaching retirement now face a massive dilemma. Do they stay in their final salary scheme and enjoy their secure pension for life, but deny their children and grandchildren any benefit should they die earlier in retirement? Or do they transfer into a defined contribution pension savings account, which could provide their extended family with huge financial benefit – but could leave them short of income if they live too long?"