#AS 2014 – PwC comments on changes to joint-life annuities

Raj Mody, head of pensions consulting at PwC commenting on the tax changes to joint-life annuities when they are passed on to a spouse after death;

The abolition of the death tax on joint-life annuities will boost the attractiveness of annuities and level the playing field with income drawdown, but on its own it is unlikely to kick start a full scale return to the annuities market once the pensions freedoms come into force next April.

The pension reforms from the Budget earlier this year were so transformational that we haven't seen the end of further changes needed to work out loose ends. Today's announcement won't be the last on pensions before next April. And it's unlikely to be all settled by April anyway – we expect another couple of years at least of ironing out the practical details.

Raj Mody | Partner
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