Pension Wise extended as annuities plan delayed

Plans for a secondary annuities market will not be implemented until at least 2017 after the Treasury said the move would be delayed. In the official Budget report yesterday, the Government said it would set out the proposal in the autumn.Plans to allow the re-selling of existing annuity contracts were confirmed as part of the Budget earlier this year. The move has been described as an extension of the new freedoms.Officials said the Government agreed with respondents to the recent consultation that implementation should be delayed until 2017 “to ensure there is an in-depth package to support consumers in making their decision”.{desktop}{/desktop}{mobile}{/mobile}The ABI last week called on the Government not to ‘rush’ the implementation and also warned that security against scams must also be addressed fully.Protection for the rights of dependents and beneficiaries, particularly vulnerable older people, must be cemented before the plans go ahead, it said.Despite the delay, the Government reiterated its desire to see the proposal go ahead, saying it “wants existing annuity holders to have the freedom to sell their annuity income”.Meanwhile, the Treasury announced more on a consultation about transfers.The Treasury stated in the official Budget report: “The Government wants to ensure that people can access the new flexibilities easily, and at reasonable cost. “The government will consult before the summer on options aimed at making the process for transferring pensions from one scheme to another quicker and smoother, including in relation to any excessive early exit penalties.“If there is evidence of such penalties, the government will consider imposing a legislative cap on these charges for those aged 55 or over.It also revealed that Pension Wise is to be extended to those aged 50 and above and said that a “comprehensive nationwide marketing campaign” will be launched to raise more awareness of the service.Gillian Guy, chief executive of Citizens Advice, which is providing Pension Wise, said: “The right support and guidance is vital for people approaching important decisions about their retirement finances. Pension Wise has been well received by those who have come to us for guidance and it’s good news that more people will be able to access the service.“The Government must consider people who are self-employed when looking at how to incentivise people to save for the future.”

Pension Wise extended as annuities plan delayed

Related items

News from Twitter