In a recent report, Mike Morrison, Pensions Strategy Manager at Winterthur Life, has spoken in defence of the alternately secured pensions legislation. He has stated that to reject it now will undermine confidence in the pensions market.
He has stated that it is not likely to be a mass market product as you have to reach age 75 in order to implement it. If you want to use it as a way to avoid inheritance tax, then the tax will be greater if you die and have not claimed it, than if you take the normal annuity fund.
Our view
We agree with Mike. The use of ASP is and will be limited.
The knock on effect of a Government that makes such huge U-turns in pension law would damage pension saving confidence beyond repair and certainly, we would have to advise clients accordingly.