The Government has planned to take the rules back, according to which most people had to take pension at the age of 75. Pension is an income for life time, however many savers rate it to have poor value.

After this plan of the Government, the pension savers will have more options about changing their funds into an income for lifetime.

The new plan will be effective from April, 2011 and after that 75 would no longer be a compulsive pension age. This will allow the people to draw an annual income.

The new plan will set a cap for the maximum income to be withdrawn for those with modest pension, so that their all funds are not over in one go only.

However, this is not so friendly with the wealthy people, as they won’t have any cap for their withdrawals and also, they will have to pay taxes on their every withdrawal.

According to the present plans, a person cannot keep his pension invested for period longer than the age of 75, and also there are rules that he can withdraw a particular amount of income. It also requires a tax payment of £82 of every £100 detained at the time of death.

After the death of the saver, the pension would be given to the dependant.