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ABI welcomes move to abolish 55 tax on pension income drawdown funds

The Government is set to announce plans today to abolish the 55% tax on pension drawdown funds.

Yvonne Braun, Head of Savings, Retirement and Social Care, Association of British InsurersCommenting on the plans, Dr Yvonne Braun, Assistant Director and Head of Savings, Retirement & Social Care at the ABI said:

"Providers will wholeheartedly welcome this change which we had asked ministers to consider.

"A 55% tax charge if someone dies before they have accessed their pension fund goes against the grain of the wider Government policy of making pension saving more popular by giving people more options on how to use their retirement savings.

"This is a sensible move which deserves support."

Last updated 01/07/2016