READ MORE State pensioners face working ‘beyond age 70’ because of 2015 rule<\/strong><\/a><\/p>\n\u201cIt\u2019s a disaster,\u201d Lady Altmann said. Sheslammed that the \u201cdraconian\u201d way the policy was introduced. Lady Altmann said: \u201cThis policy could end up being as damaging to workplace pensions as Gordon Brown\u2019s tax rate was for DB [defined benefit] pensions.<\/p>\n
\u201cI honestly think this is an existential threat to the long-term survival of our DC [defined contribution] pensions, because there\u2019s a clear incentive to take the money out as soon as you possibly can.\u201d<\/p>\n
Lady Altmann said: \u201cThis IHT [inheritance tax] imposition will ensure that more and more people \u2013 especially those who don\u2019t have massive amounts of money \u2013 will just say, \u2018Why on earth would I want to lose two thirds of my pension to the taxman? I\u2019ll just take it out as soon as I can.\u2019<\/p>\n
\u201cThose who build up, say, between \u00a3200,000 and \u00a3300,000 over their working life are now in danger of having a real financial incentive not to keep money in their pensions for their later life and then end up in poverty.\u201d<\/p>\n
Guy Opperman, another former pensions minister, said: \u201cPensions are taking a big hit from the Government\u2019s actions.<\/p>\n
\u201cThe consequences of this policy are clear: people will save less for their pension and will withdraw more. This will also affect the ability to pass money on. There is time for the Government to think again and they should. It is very short-term.\u201d<\/p>\n
An HM Treasury spokesman said: \u201cWe continue to incentivise pensions savings for their intended purpose \u2013 of funding retirement instead of them being openly used as a vehicle to transfer wealth \u2013 and more than 90pc of estates each year will continue to pay no inheritance tax after these and other changes.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Rachel Reeves announced in her October Budget that pension pots would no longer be exempt from inheritance tax…\n","protected":false},"author":2,"featured_media":331532,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,1267,474,2499,16,15],"class_list":{"0":"post-331531","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-dwp","10":"tag-finance","11":"tag-personal-finance","12":"tag-uk","13":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115000977901571396","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/331531","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=331531"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/331531\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/331532"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=331531"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=331531"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=331531"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"State](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/08\/0_pensioners9.jpg\")
State pensioners rush to withdraw cash over ‘draconian’ new HMRC rule<\/p>\n