Gordon Brown, in his pre budget report, has dropped a bombshell on tens of thousands of people who had hoped to bequeath part of their pension to their relatives.
Brown now intends to take over 80% of the money inherited from personal pensions for himself.
Needless to say, Chancellor Brown is facing a severe backlash as the pensions and insurance industry counter attack this removal of people's freedom over their pensions.
The tragic irony of this loss of freedom, is that Brown had only introduced it back in April 2006.
This shameful volte face indicates that either Brown is incompetent, or the UK's financial situation is worse than he is letting on.
Fergus Lyons, commercial director at AJ Bell, said:
"Previously you could pass on your pension fund to heirs.
Now you've got to give it to an insurance company or you've got to give it to Gordon Brown. I reckon this will be a major switch-off for future pension savers."
The new rules, introduced in April 2006, allowed those who were over 75 to pass on their entire pension fund to their family, subject only to inheritance tax.
Brown has now added a new tax on death of "up to 70%" which will be levied on these funds.
As ever, despite exhorting people to save for old age and to be independent from the state, Brown and the Labour Party do their best to wreck the savings industry and make people reliant on the state.
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