Limit or scrap tax on pension withdrawals for care purposes, ABI urges

Trade body says current tax rules discourage savers from using pensions to fund care

Martin Richmond
clock • 3 min read
Limit or scrap tax on pension withdrawals for care purposes, ABI urges

HM Treasury should scrap or limit tax on pension withdrawals if the funds are to be used for care related purposes – including if they are to be used for an immediate needs annuity (INA) – the Association of British Insurers (ABI) says.

In its Prepare for Care report - published yesterday (9 February) - the trade body argued the current taxation rules for pensions withdrawals, particularly for larger withdrawals which can be taxed...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Industry

Buzz: Should well-off pensioners get an honour to opt out of the state pension?

Buzz: Should well-off pensioners get an honour to opt out of the state pension?

Pension honours, LGPS surpluses and Standard Life PRT venture

Professional Pensions
clock 24 August 2026 • 1 min read
Schemes need 'greater visibility' of how AI is being used in operations

Schemes need 'greater visibility' of how AI is being used in operations

Penfold says AI could make pensions better but warns the industry to adopt it responsibly

Holly Roach
clock 24 August 2026 • 2 min read
You can't fix pensions without a plan for an ageing Britain

You can't fix pensions without a plan for an ageing Britain

Patrick Heath-Lay says government must be clear about what the state pension provides

Patrick Heath-Lay
clock 24 August 2026 • 4 min read
Trustpilot