Savers will be able to pass on money in their pension pots tax-free after their death under government plans to abolish a punitive 55% penalty tax.
Chancellor George Osborne announced the measure at the Conservative conference in Birmingham.
It will apply to anyone inheriting money held in a pension fund from April of next year and should benefit hundreds of thousands of people.
Mr Osborne is set to tell an audience at the Tory conference tomorrow: "People who have worked and saved all their lives will be able to pass on their hard-earned pensions to their families tax-free."
Our Political Editor Tom Bradby has been tackling readers' questions about David Cameron's conference speech.
I think it is fair to say that was the best speech I have seen David Cameron give in the decade I have been reporting on him.
A mum from Acocks Green has taken advantage of the Conservative Party Conference by using it to take four selfies with the Prime Minister.