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Hornbuckle in pre-Budget plea to Darling to pass on pension funds

Hornbuckle Mitchell has appealed to Chancellor Alistair Darling to allow pension savers to pass on any unused funds when they die to boost their children’s retirement savings, in the pre-Budget report.

In a letter to the Treasury, managing director David White says the move would give millions of people more confidence to save for their retirement.

He says: “I strongly believe the Government can rejuvenate pension saving by implementing rules that will allow the unused pensions of one generation to be passed on to help fund the retirements of the next generation.

“This would give millions more people the confidence that money put aside today will benefit themselves or their families tomorrow.”
White says pot sizes will still be limited by the lifetime allowance, which means tax charges will apply to people who attempt to build up extravagant pension funds.

He adds that when income is taken from the fund, it will continue to be subject to income tax.

But AJ Bell marketing director Billy Mackay says: “As honourable as this is, there is really no chance of the Government moving on this unless there is a significant change in the direction of policy. “Labour has made it clear to us on several occasions that it does not believe allowing tax-privileged funds to be passed on is fair to other taxpayers. The only chance of this change happening is if the Tories get in to power.”

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