View more on these topics

Budget: Govt delays secondary annuities reforms


The Government has delayed plans to introduce a secondary annuity market amid concerns about the impact rushing the reforms could have on savers.

The reforms, which will allow people to cash in their annuity, were due to be implemented in 2016.

However, the Treasury has confirmed this deadline has now been pushed back to 2017 after insurers warned of the challenges in establishing a functioning market.

Last month the ABI said: “The Government’s proposals to create a secondary annuity market will potentially extend the freedom and choice reforms, and we want them to work for customers.

“Naturally there are considerable challenges in establishing a functioning market, and many unresolved complex legal, regulatory and prudential questions.”

The Budget document says: “Following consultation, the Government has decided to delay implementation of this measure until 2017, in order to ensure there is a robust package to support consumers in making their decision.

“It will set out further plans for introducing this measure in the autumn.”

Retirement Advantage pension technical director Andrew Tully says: “This is a good move to allow more time to consider how to protect customers. There is a real danger that people could get poor outcomes from trading their annuity, so we need to take time to consider how people can get a better deal by making sure they shop around.”

Wingate Financial Planning director Alistair Cunningham says: “The whole concept of tradeable annuities is inherently flawed. Given the consultation on reforming pensions tax relief it would seem foolhardy to detract from this more relevant and significant paper.”



Sanlam bags £10m from Intrinsic stake sale

Sanlam UK received payment of £10m following the sale of its stake in advice network Intrinsic to Old Mutual Wealth, the firm’s annual report and accounts reveal. Sanlam was one of a number of major shareholders in Intrinsic prior to its acquisition by Old Mutual in February last year. Following the sale, two loans worth […]


Budget: Govt to slash landlord mortgage interest relief

Chancellor George Osborne has pledged to restrict mortgage interest relief to the basic rate of income tax. Giving his Summer Budget speech today, he said the higher rate of mortgage interest relief would be withdrawn gradually over a four-year period from April 2017. He said: “Buy-to-let landlords have a huge advantage in the market as […]


Bellpenny adds £200m in latest advice deal

National wealth manager Bellpenny has acquired London advice firm Cranfield Financial Services for an undisclosed sum. The deal sees Bellpenny take on around 500 active clients and £196m of assets under advice. Four financial planners will also join Bellpenny as part of the deal. The acquisition is the 29th made by Bellpenny since it was […]


Ombudsman backs Royal London over rejected liberation transfer

The Pensions Ombudsman has rejected a complaint against Royal London from a customer seeking to transfer their savings into a SSAS. Donna-Marie Hughes, then aged 41, first tried to transfer her accumulated savings of £8,359.71 into the Babbacombe Road 1973 Limited SSAS in July 2014. Hughes was contacted by Derby-based First Review Pension Services after […]

Bonds going bust? Not so fast….

In recent months bond bears have been reinvigorated, and market commentary suggesting “the end of the bond (bull) market is near” has become commonplace. We think these comments are premature. Explaining the global government bond sell-off October has seen renewed pressure on global government bonds, initially provoked by a Bloomberg article suggesting that the ECB […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment