City Trustees - part of Mattioli Woods

News and Media

29 September 2014

City Trustees welcomes move to make pension assets more viable

City Trustees welcomes the announcement detailing the government's commitment to reduce the tax cost associated with passing on pension assets.

Mark Smith, Group Operations Director and Compliance Officer, commented on the changes:

"We believe this is a real positive step for the state, pension fund holders, their families and other beneficiaries. These changes, together with the new full access provisions, will encourage greater long-term saving, particularly as the use of income drawdown as opposed to the annuity route will become more commonplace."

In the past, the business has seen legislation drive planning that is at odds with the true rationale for pension saving. Where the tax on death was as high as 82%, this drove individuals to actively run down their pension assets to avoid leaving a large residual asset base subject to such inordinate taxes.

City Trustees believes these legislative changes will create a need for new thinking, and the dynamic of how individuals structure their income in retirement will need to change, focusing on the interaction of personal and pension assets. This will be a great opportunity for IFAs.

Ed Carey, Managing Director, added:

"The key themes around these changes will be to consider income tax planning, or from where income is drawn, and structures that will need to be put in place to help protect pension assets that have been paid tax-efficiently on death for the longer term."

"The opportunities for IFAs and pension scheme members will be significant but it is clear that sound advice, as well as considered product selection, will be key."

City Trustees is well placed to work with its IFA partners to ensure the delivery and management of best-in-class products to meet these changes.


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City Trustees is a trading name of Mattioli Woods plc. For news updates on the Group, please visit our central News & Media on the Group website.