Because the UK government allows people to pay a limited amount of their earnings tax-free into a pension fund, it feels it has to control the subsequent use of it. One condition has been that people have been required to spend at least 75% of their fund on buying annuities before they reach the age of 75.

Annuities give a lifetime income in exchange for cash, and the government's intent is to stop people spending all their pension savings and then becoming dependent on the state. However, annuities convey entitlements in exchange for property. When you die there is no fund left to pass on.

Furthermore, the value of annuities varies at the time of purchase, and can give poor returns to someone forced by law to buy at an inopportune time. Government even affects their value by its borrowing. By issuing many bonds, they lower their value. There has been unrest in the UK at the injustice of the law, and at the poor values which it forces people to accept. Many would prefer to draw down their savings at a rate which will see them through, and to pass on any unused part when they die.

Yesterday the House of Lords voted to delete the annuity requirement of 75% by 75. Under UK procedure, this does not necessarily become law, as the government may use its House of Commons majority to restore the requirement. But it does sound the death knell for an unjust and out-dated law.

In the near future people will be able to save what they want, and because there will be no tax concessions, there will be no state limits on it, or state control of the savings. And because tax has already been paid, any future growth will be tax-free, as will any income drawn from the fund. That day was brought a little nearer by yesterday's vote in the House of Lords.