Prudential pensions says annuities proposals are sensible

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Prudential pensions says annuities proposals are sensible

Fri 16th Jul 2010

The new proposals being put forward by the government regarding annuities are sensible, according to finance expert at Prudential pensions.

Barry O'Dwyer, deputy chief executive of the firm, suggested the state plans should "protect the public purse" and praised the government for recognising the importance of such financial tools.

He said: "The government has avoided throwing the baby out with the bath water. Its proposals are sensible and have the potential to offer more flexibility to people."

However, one area which Mr O'Dwyer believes should be treated with caution is increasing the tax on death benefits, since this could hit basic tax rate payers unnecessarily hard.

The Prudential pensions spokesperson explained that the government is proposing to raise this levy from 35 per cent to 55 per cent.

Last month, Mr O'Dwyer stressed the importance of the state holding consultations with regards to pensions and annuities, as it is vital that people do not fall into poverty later in life.

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