Pensions reform: where are we now?

HM Treasury is consulting on significant changes to the pensions regime, which will give greater flexibility to pensioners in managing their pension funds in retirement. The 25% tax free lump sum will remain, but individuals with defined contribution schemes will be able to draw down the whole of their pension fund, subject to income tax at their marginal rate. The changes herald a move away from the reliance on annuities, although these will continue to have an important place in planning for retirement