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date: 15 July 2010

embargo: For immediate release

Annuity consultation irrelevant for vast majority of pensioners and pension savers

Commenting on the consultation on annuities announced by the Government today (Thursday), TUC General Secretary Brendan Barber said:

'This is only an issue for the top few per cent of the richest pensioners who do not need to worry about whether their pension pot will run out before they die.

'Too many of the super-rich take advantage of the huge tax relief on pensions and shovel away more than they need into their pension pots when they are working.

'Now they want to be able to be able to take it back out of their pension when they have died and instead pass it on to others. It's not much more than a demand to introduce hereditary rights to tax avoidance.

'There's a lot wrong with money purchase pensions and our annuities system, but changes to the age limit without a more fundamental look at the whole issue is not the way to proceed.

'The millions of pensioners who have lost out from switching indexation from RPI to CPI and the increase in VAT will wonder about the Government's priorities.'

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Press release (400 words) issued 15 Jul 2010