Origen Financial Services

Origen Financial Services Welcomes Removal of Unfair 55% Pension Death Tax

Savers will be able to pass on money in their pension pot tax-free to a nominated beneficiary after their death and Origen Financial Services welcomes the move


Farnborough, Hampshire -- (SBWIRE) -- 10/02/2014 -- Under plans announced today by George Osborne at the Conservative Party Conference, savers will be able to pass on money in their pension pot tax-free to a nominated beneficiary after their death. This announcement was originally due to form part of in December’s Autumn Statement but the Chancellor has brought this piece of good news forward.

The Chancellor will remove a 55% tax charge that currently applies to untouched ‘defined contribution’ pension pots left by those aged 75 or over, and to pensions from which money has already been withdrawn, by allowing individuals to pass on their pension if they die. The inheritors will now only pay the marginal Income Tax rate on any withdrawals, or no tax at all if the deceased was under 75. The Treasury predicts the new policy will cost approximately £150m per year.

Mark Pearson, Director Business Development, Origen comments:

“We welcome these changes. We have always felt that the current 55% tax charge on death benefits for those in drawdown or over age 75 was unfair. We believe that these changes, coupled with the increased flexibility being made available from next year, will encourage more savings into pensions. We also expect more and more customers to utilise a ‘drawdown’ solution in the future rather than purchase an annuity. One note of caution is that drawdown plans can need careful management to ensure any income drawn is sustainable and professional advice is often needed to ensure the pension pot doesn’t run out.”

Pearson continues: “Those customers who are invested in pensions and are approaching, or past, their 75th birthday may need to reconsider who they nominate to receive death benefits from their pension. This rule change may also affect some death benefit planning that has already been put in place, such as spousal bypass trusts. We await the full detail of the proposals and will update any affected clients in due course.”

About Origen Financial Services
Origen Financial Services is one of the UK’s largest financial advisory businesses with over 230 employees that are either home based or located in offices nationwide. Around 400,000 individuals, 900 small and medium sized businesses and some of the UK’s largest organisations retain us as their adviser.

-We are an advice led business which focuses on building strong partnerships with clients, treating them fairly in the delivery of our advice and providing excellent service.

-Origen Financial Services is part of Aegon.


-In the UK, Aegon offers retirement, workplace savings and protection solutions to around two million customers and employs approximately 2,100 staff. Aegon UK’s revenue generating investments totalled £58 billion as at
30 June 2014.

-As an international life insurance, pensions and asset management company based in The Hague, Aegon has businesses in over twenty markets in the Americas, Europe and Asia. Aegon companies employ over 27,000 people and have millions of customers across the globe as at 30 June 2014.

Further information: www.aegon.com

-The value of an investment can fall as well as rise and is not guaranteed. Investors may get back less than originally invested.

-This information is based on our understanding of current legislation, taxation law and HM Revenue & Customs practice, which may change. The value of any tax relief depends on the individual circumstances of the investor.

-Aegon is the Lead Partner of British Tennis.