Saga welcomes go-ahead for people to sell their annuitiesWednesday 16 December 2015
Further to the Treasury’s announcement that it will introduce a secondary market in annuities from April 2017 and thus extend a shake-up in the pensions market, Gareth Shaw, head of consumer affairs at Saga Investment Services commented:
Saga welcomes go-ahead for people to sell their annuities
"We welcome the government's decision to give the go-ahead to allow over 50s to sell their annuity. Thousands of people who receive minimal income from annuities they were forced to buy will benefit from these new rules. Research carried out by Saga found that 58% of people who wanted to sell their annuity were receiving such a small income they could do nothing meaningful with it.
"The government has set out a robust framework to ensure that consumers are protected and that a secondary annuity market is functional but there's still more detail to be developed - in particular how consumers can understand whether they're getting a good deal when selling their annuity. The government has recommended the development of a tool or calculator, but what happens to people who aren't digitally engaged but want to sell their annuity?
"Requiring advice is a good thing - and it's important that the rules around advice take in the experiences of consumers since the pension freedoms were introduced. Extending Pension Wise is a helpful first step, but it won't be enough for many people. Therefore, it's vital that the Financial Advice Market Review and the next consultation on the annuity market work to create stronger links between Pension Wise and the advice industry."
About Saga Investment Services
Saga Investment Services has been developed to open up the world of investing and financial planning to the UK’s over 50s in the run up to and throughout retirement, and to make the process as simple and stress-free as possible. Customers can invest from just £50, and have access to investment advice and financial planning services. Saga Investment Services champions a straight forward and transparent approach to investing, and is a proud member of the plain English Campaign. It is a joint venture between Saga, the leading provider of services to the nation’s over 50s, and Tilney Bestinvest, the expert investment and financial planning group.
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