Axa systems cannot handle age rule change
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Axa says it will allow Elevate PIA and Winterthur customers who turned 75 on or after the Budget to stay in unsecured pension, although system problems mean they cannot take income.
While it is developing new rules, the Government has allowed people who reached 75 on June 22 or after to delay buying an annuity for another two years, with their tax on death 35 per cent instead of the 82 per cent previously applicable.
Axa’s systems are unable to cope with the change, although the few customers in its family Suntrust, which launched last year, are unaffected.
Axa says it is working to ensure its systems can “accommodate the extension of USP to age 77”.
A spokesman says: “We are allowing people to stay in USP beyond 75 but for the moment we cannot make any post-75 USP income payments.”
An ABI spokesman says it is not aware that this is a widespread issue among providers, although a number of individual providers may be affected.
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