There is now no need to have to serach for the best UK annuity rates at age 75. The chancellor has abolished rules forcing millions of retirees to have to buy an annuity by the age of 75. As an interim measure, the age has been pushed up to 77 from 75 with immediate effect, ahead of a consultation on scrapping the rule completely from next year. The budget states the government will end the existing rules that create an obligation to purchase an annuity by age 75 from April next year, to enable individuals to make more flexible use of their pension fund. To that end ministers will soon launch a consultation, hence the need for some transitional measures to cater for those who will reach the grand old age of 75 in the meantime.
Currently, anyone who has a “money purchase” company pension plan, which builds up depending on the performance of the stockmarket, has to buy an annuity (which is a fixed income for life) with their pension fund by the age of 75. Tom McPhail, of Hargreaves Lansdown, said the chancellor’s announcement will actually go a long way towards addressing many people’s reservations about committing money to a pension, and poor UK annuity rates.
