The punitive 55% tax charge that currently applies to lump sum
death benefits paid from drawdown arrangements will be abolished altogether.
There was talk of 'the second death of annuities' following the announcement; however, annuities with lump sum
death benefits, such as value-protected annuities, will benefit from the changes.
It seems as if the large real dollar numbers of lump sum
payouts mesmerize folks heading into retirement.
An alternative could be to take the money in annual lump sums
Taking a lump sum
of pounds 7,500 would reduce his yearly income to pounds 1,366.
Someone who invested pounds 50 a month into the average investment trust during the year to the end of April would have seen the value of their holding fall by seven per cent to pounds 558, considerably better than the 30 per cent loss to pounds 419 suffered by someone who invested a lump sum
of pounds 600 in April 2008.
People who are interested primarily in reducing VA's workload and reducing government spending with total restrictions on reopening claims and deeply discounted lump sums
have seen this as an attractive and easy way to do that," Violante said.
Mr Smith said: "Since April 6 anyone over 50 will have the option of taking 25 per cent of their pension as a tax-free lump sum
, whatever pension scheme they belong to, including a protected rights pension, AVCs and FSAVCs.
Moreover, if the recipient dies, heirs have access to the remaining lump sum
, while structured settlement payments often stop at death.
SIRVA's Lump Sum
Xpress offers employees the information they need to relocate in one convenient spot.
In a report for the thinktank CentreForum, he said people should be able to withdraw any lump sum
they had built up - to a limit of pounds 10,000.
Replacing monthly disability compensation payments with a one-time, lump sum
payout, as some have suggested, might save the Department of Veterans Affairs money and reduce the claims backlog, but would it be good for veterans?