Although tax relief on pensions is a controversial area of government expenditure, this is the first study of the tax … effects for a real world defined benefit pension scheme. First, we estimate the tax and national insurance contribution (NIC … wealth of the sponsor, government, and 16 age cohorts of members, deferred pensioners and pensioners. Second, we measure the …

The tax system treats funds that remain in a pension at death extremely favourably. Where an individual dies before age … 75, funds remaining in their pension escape income tax entirely - there was income tax relief when the money was paid … into the pension and no income tax when the money is taken out. Furthermore, any funds that remain in a pension at death …