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Advisers want re-think on pension scheme death benefits
Following the shake up for the pensions industry announced in the Budget, Rowanmoor Group gauged advisers' opinions on the new pension income flexibility proposals.
Some 80 per cent of delegates polled at its recent nationwide adviser workshops believed that there should be an option to transfer lump sum death benefits tax-free to nominated beneficiaries' pension funds.
Rowanmoor's poll also found that 70 per cent felt there was a need to incentivise individuals to keep money within a pension wrapper, with the long-term aim of providing income in retirement, in order to counter the temptation of early withdrawal.
Advisers also said that both client behaviour and advice will be directly influenced by the way in which lump sum death benefits payable from pension schemes will be taxed, because this will be a crucial factor in determining when and how will be best to draw income.
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Robert Graves, head of pension technical services at Rowanmoor Group said: "The Budget announced many important changes affecting pensioners' income flexibility but it will take time to see how these will affect the future retirement landscape.
"The first stage of our research shows that advisers have genuine concerns and these must be addressed.
"The overarching theme from this poll is that the current pension death-benefit tax regime needs to be reviewed, a subject that we feel very strongly about.
"The Government must listen to the industry if it wants to reduce the nation's reliance on state benefits."
He called for more advisers to participate in its online survey.