The Government announced recently that they had plans to put an end to compulsory annuity purchase. This is the requirement for people with private pension plans to convert their savings into an income with an annuity by age 75. It looks at first sight like a good idea. However, this reform will be of use to only a tiny handful of very wealthy retirees who can actually afford to continue taking investment risks with their hard earned pension funds during old age. One change; while retirees with annuities are unable to pass on pension funds to their dependants, those who avoid buying a guaranteed income will be able to do so, albeit subject to a pretty hefty tax charge.
No, what’s really needed is to stop tinkering around with all this, and change the rules regarding the open market option. Make it the default option when it comes to annuity purchase. That means everyone will know they can shop around for a better deal and a higher retirement income. This will improve the financial position of the retiree, put less of a burden on the State, and, unfortunately, increase tax revenues for the Government. Everyone wins.
What utter rubbish, you are one of the reasons that I voted Conservative for the first time.(you have to be Scottish!.)
1. It is my money.
2. You make no mention of having to purchase annuities when the bank interest rates ae so low – this can make a difference of 300%
3. What about my wife, currently the rates for joint life are ridiculous.
4. I have other funds including a serbs old age pension.
5. My wife has a pension.
6. Why should I Not be allowed to leave my money to my wife and/or children just because I have reached the age of 75. Should I die before I reach 75 everything is fine. For Christ’s sake what so special about the age of 75.
7. With such a low bank rate there are not any ‘better deals’
8. I am not a very wealthy retiree.
9. The vast majority have an open market option now.
10. You know nothing about me so who the hell are you to tell me what to with my own money?.
11. You are clearly a vested interest speaking on behalf of the finacial services industry who with the cooperation of the largely Scottish Labour goverment
pay themselves massive bonuses to legalise stealing money from old people.
12. By now you may have got my point.