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Broker Talkback

Are the Tories right to call for a relaxation of enforced annuitisation rules due to the current financial crisis?

Yes 100%

Yes “There is some merit in it for those between the ages of 70 and 75. They could do a hybrid situation whereby they extend the drawdown but if they relax rules to 80 years it will become a bit meaningless because the person will take the benefit when he or she requires it.”

Malcolm Wilcox, Malcolm Wilcox & Co

Yes “They are quite right to propose this. People should be able to defer until the markets pick up because these are extreme circumstances.”

Terry Mountford, TJ Mountford Financial Services

Yes “I am for it. It gives greater freedom and that is what is needed in the current market.”

Paul Holdsworth, Holberg

Yes “I am in agreement because it will provide greater flexibility for customers which is what they need at the moment.”

Jeremy Grigg, Talk Independent

Yes “Emphatically yes because otherwise you are heavily penalising people who are imminently approaching the age of 75.”

AGB Financial Services director Andrew Barnes

Yes “I have thought for some time that the annuity rules should be relaxed. With annuities, people could have a lot of money tied up in them and the rate you get does not fully reflect the rate of capital that is there. It does not take into account the fact that you are never going to get your capital so I think in many cases annuities are a poor deal.”

E Wright & Co Insurances principal Ernest Edward Wright

Yes “I do not think there should be a cap on annuitisation age at all and if there must be one, it should be as late as 95. If you are forced to annuitise in the current market, it could be very detrimental.”

Mike Morris & Co principal Mike Morris

Yes “I think that most IFAs would want an end to forced annuitisation regardless of the market volatility or not.”

Paul Duckworth IFA Paul Duckworth


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