Tax rules amended to allow greater innovation

The tax rules will also be amended to allow innovation in retirement products. This is happening in a number of ways:

 

Lifetime annuities will be able to decrease in payment, for example, when someone’s State Pension comes into payment

A lump sum will be able to be taken from a lifetime annuity. This will need to be specified in the pension terms and conditions, so this will only apply to new policies

The current ten-year cap on annuity guarantee periods will be lifted to allow payments to beneficiaries to continue beyond the current 10-year maximum

Payments from guaranteed annuities could be paid as a lump sum (if they are less than £30,000)