Government right to shelve annuity sales, says industry

October 19, 2016 | 5years | Retirement Planning News

The Treasury's decision to abandon plans to let pensioners raise money by selling their annuities has been welcomed by the pensions industry.

The controversial idea was first aired in March 2015 by the then Chancellor George Osborne as part of his plan for "pension freedoms".

Despite deciding last December that the plan would go ahead next April, the government has now changed its mind.

The Association of British Insurers (ABI) said it was the "right decision".

The government admitted that too many pensioners might be lured into selling their annuities - an income for life - in exchange for a lump sum.

Acknowledging that most people would be best advised to stick with their current annuities, the Economic Secretary to the Treasury, Simon Kirby, said: "Allowing consumers to sell on their annuity income was always dependent on balancing the creation of an effective market with making sure consumers are properly protected.

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