The Inland Revenue admits it may now ditch proposals to make income drawdown and occupational pension retirement options more flexible.
Life offices had originally hoped for an announcement allowing income draw down to be taken directly from occupational pensions and greater retirement flexibility later this year.
But following delays in the publishing of a consultation paper released in February, the proposals now appear to have been indefinitely put on hold.
A Revenue spokesman says: "It is not a question of when rather than if we will make a change to the rules. It is still being considered and it may not happen."