We’re glad to report that at last, the government has announced that people will no longer be obliged to buy an annuity with their pensions.
Under the present rules, anyone with a personal or company pension reaching the age of 75 must purchase an annuity.
The annuity would then provide the fund member with a guaranteed pension income.
Although it possible to take 25 per cent of a pension pot as a lump sum, the remainder must go towards funding the annuity.
However, industry experts have argued that the arbitrary deadline forces some retirees into buying an annuity when market rates are low, so reducing the benefits to the pension scheme member. >> For more on this story link here.
If you want to discuss pensions and investments call Simon Fox at Carpenter Box Wealth Management LLP on 01903 534587 or send an email message here.