Don't delay in expectation of reform

There has been pressure for reform, in particular because:

annuities are perceived as bad value
many would like to preserve their pension fund for their heirs

It was hoped that much greater flexibility might have been introduced on A-day, April 2006. In practice, there was little significant change on the above two matters, and in reality the Government had made their position clear as far back as 2002:

“annuitisation of pension savings is the right approach. There are no plans to alter the age at which buying an annuity becomes essential from age 75.”

They were at pains to point out that people are given generous tax relief on their pension contributions on the understanding that their pension fund is used to provide an income for life after they have retired.

In years to come a different Government might raise the age at which you are required to buy an annuity, but, for now, this is just speculation.

Thanks for your letter last week and for all your help in securing my pension. As you predicted Nor...
[read more]