The Times told its readers to prepare for the pension revolution starting on 6th April this year. It said that while the new freedoms over withdrawals were welcome, many pension providers would not, in fact, offer these facilities so that many people would have to transfer their funds to a different provider in order to be able to use them. It also warned people to plan their withdrawals to avoid paying a lot of unnecessary income tax.
Since the new rules allow a pension fund to pass free of both income tax and inheritance tax on death, many people will find it worth revising their wills and inheritance arrangements to minimise the amount of tax paid on the fund they leave to their heirs.