I read recently that the private member's bill calling for amendment of the law requiring the compulsory purchase of annuities by no later than the age of 75 has cleared another hurdle, despite Government opposition.
On just what grounds? While we all know that an annuity is guaranteed for life, the level of that guaranteed income is now such poor value for money that nobody in full possession of the facts (or their mental faculties) would commit money to an investment product which will lock in three-quarters of their fund to having to buy an annuity at retirement. I wouldn't anyway.
Perhaps MM might care to ask Ian McCartney, whose own income in retirement will be entirely independent of annuity rates, where he stands on the issue, so we know who and what we are up against. Personally, I intend for the foreseeable future to continue recommending Isas as a better proposition than just about any personal pension.
Julian Stevens Partner, WDS Independent Financial Advisers, Kingswood, Bristol