The Treasury reverses their decision to allow pensioners cash in their annuities.
Last year it was announced that pensioners would be able to sell their annuities for cash lump sums as of April 2017. The intention was to enable those receiving a poor annual income from their pension savings to get out of their lifetime contract. The Treasury has now scrapped the scheme, as it was revealed that a number of pension firms had refused to take part, and concerns were raised that excessive charges could be applied to any exchanges.
Tough Sell
This could come as a disappointment to pensioners that are locked into to poor paying annuities, however it has been suggested that getting an appropriate amount of value from cashing in annuities would have been very difficult. What’s more, the level of protection and regulation required before a person sold their annuity would not have made it a viable option.
Employees of some companies are also being offered lump sums to give up their final salary pensions. If you would like advice on the best option to take with your pension, please get in touch.
