Annuity freedom announced in Budget, but the devil, as always, will be in the detail.
“People who’ve worked hard and saved hard all their lives should be trusted with their own pension.” George Osborne 18 March 2015.
As widely trailed the Chancellor announced yesterday that the Government will extend its pension freedoms to around 5 million people who have already bought an annuity. This will be achieved via legislation to remove the restrictions on buying and selling existing annuities to allow pensioners to sell the income they receive from their annuity without unwinding the original annuity contract. The change will be effective from 6 April 2016.
They can either take it as a lump sum, or place it into drawdown to use the proceeds more gradually, extending the flexibilities due to come into effect on 6 April this year for those who have yet to draw benefits. Read more »