View more on these topics

Backing for ABI plan to raise the annuitisation age to 80

The Association of British Insurers’ proposal to increase the age of forced annuitisation to 80 has been warmly received by the industry.

The ABI policy paper, entitled, Time For Change: Seven Proposals to Improve DC Pension Benefits, published this week, called for a number of changes to the way that DC pension income is taken in retirement.

ABI acting director general Maggie Craig says the increasing numbers of people saving in DC schemes combined with increasing life expectancy means the rules governing income withdrawal from DC schemes are “no longer fit for purpose”.

In addition to increasing the age for annuitisation or conversion to Asp from 75 to 80, the ABI is calling for additional protection for pension benefits for pensioners who die after age 75, an exemption from the requirement to annuitise for retirement products that have a lifetime income guarantee and a reduction in the tax rate for lump-sum death benefits for annuities, unsecured pension or Asp.

The ABI also wants to see rise in the maximum withdrawal rate for Asp, a standardisation of the trivial commutation rules for occupational schemes and contract-based DC schemes and the ability for people with small pension pots to combine their funds with spouses or partners to buy joint-life annuities.

MGM Advantage chief executive Chris Evans says any measures that give more control or flexibility to savers is welcome but that any new rules should concentrate on making the open market option work.


IFAs used as ‘pawns’ in expat fraud

Five men have been jailed for an investment scam which defrauded 56 British expats of £1.93m. According to the Serious Fraud Office, it used overseas IFAs as “unwitting pawns” in the scheme.

Swip launches multi optimal fund

Scottish Widows Investment Partnership has launched its multi-manager optimal multi-asset fund in the UK retail market to be run by Mark Harries and Simon Wood.


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Michael Westwell 7th January 2010 at 5:23 pm

    I know of people who retired abroad and have transferred their personal pension to a QROPs, because of the 75 annuity trhreat.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm