, Columnists
Use It or Lose It, When It Comes to UK Retirement Savings
Rachel Reeves’ tax plans will provide a tailwind for annuities sellers.
The tax authorities want to a chunk of your pension too.
Photographer: Bloomberg/BloombergThis article is for subscribers only.
Chancellor Rachel Reeves has profoundly altered the UK’s pensions landscape. Starting in April 2027, any retirement savings not spent in a person’s lifetime will form part of their taxable estate, largely subject to the 40% inheritance tax. That’s in addition to the income tax most people already pay when drawing down their pension.
At a stroke, this has made pensions far less attractive as estate-management tools — which to be fair, they never should have been in the first place.