Pension reform blow for savers

RADICAL pension annuity reforms have been ruled out by the Inland Revenue, disappointing millions of savers. The Revenue has quashed plans to allow pensioners with annuities to pass on their remaining capital to dependents after their death.

Paula Diggle of the Revenue said: 'The Government is not looking at extraction of capital from annuity pensions. It sees a number of drawbacks in that area.' Inflexible annuity rules have been widely criticised.