How will removing the mandatory annuity affect pension fund transfer?
01-09-2010 10:56
Transferring pensions, pension transfer advice
Transferring pension could get a further boost if the government decides to do away with the rule requiring retirees to buy a compulsory annuity.
Abolishing the law could lead to further innovative changes in the pension industry, according to Standard Life.
Andrew Tully, senior pensions policy manager for Standard Life, said: "If the government removes the age 75 restrictions […] this will allow further innovation."
It was announced during the emergency Budget in June that the government was looking to do away with the need for people to buy an obligatory annuity on reaching the age of 75 by April 2011.
The ensuing consultation period is drawing to a close on September 10th 2010, which could lead to more people seeking out pension transfer advice.
Recent research carried out by Towers Watson revealed that the annuity sales peaked to £445 million in the first half of the present year.
Advice in relation to transferring pensions in the UK
