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All About Annuities » Government deals blow to poorer pensioners looking to sell annuities

Government deals blow to poorer pensioners looking to sell annuities

Government deals blow to poorer pensioners looking to sell annuities
News from Citywire.co.uk:

Not everyone will benefit from plans to allow the sale of annuities as the poorest pensioners may be blocked from cash in their retirement income.

Chancellor George Osborne used last week’s Budget to confirm pensioners receiving retirement income from an annuity would be able to sell their policy and take advantage of the new pension freedoms by accessing the money as a lump sum.

While pensions experts are broadly agreed that giving up a guaranteed income for life is a bad idea, there are some instances where it could benefit individuals, namely where the annuity is providing such a small income as to be worthless.

As people with small pension pots were forced to annuitise pre-pension freedom, some retirees are receiving just a couple of pounds a week from their pension. The government has argued that a lump sum would be more beneficial in cases like these.

However, those with small sum annuities are also likely to be people who rely on state benefits to top up their income, and the government is considering blocking those who receive additional benefits from selling their annuity.

Of the five m…………… continues on Citywire.co.uk

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