Senior coalition figures are in talks to include plans for a consultation on creating a second hand annuity market in the final Budget before the general election, the FT reports.
Last month, Money Marketing revealed how the Treasury had called in senior industry figures to discuss the possibility of allowing people who have already bought an annuity to sell the contracts on for cash.
But pension experts branded the concept “crazy” and wrote it off as electioneering.
In December, pensions minister Steve Webb said millions of people with annuities should not be excluded from the pension freedoms coming into force this April.
He said: “No one would be obliged to do so, but for those who would prefer upfront capital to regular income, I can see no reason why this should not be an option.”
Webb has been keen to stress that he is not considering unwinding annuity contracts, but selling them on to institutional investors such as defined benefit pension funds and insurers.
Partnership chief executive Steve Groves says his firm would be interested in buying annuities if the regulatory treatment was favourable.