A group of MPs is calling on the government to bring in legislation that would allow five million pensioners to partially sell annuities purchased before pension freedoms were introduced.
The “Your Pension, Your Choice” campaign has been launched to urge the government to allow all retirees to have the same pension freedoms.
Since the introduction of pension freedoms in April 2015, savers have cashed in £9.2bn from their pension pots.
However, the campaign focuses on those who retired before April 2015, saying the government has denied those people pension freedoms and reportedly has “no plans to review this decision”.
The campaign says five million pensioners are stuck with annuities, and with limited access to their pension pots.
The campaign aims to encourage policy change, and a Change.org petition has started to gather public support.
A cross-party group of MPs, led by Conservative MP Paul Masterton, has launched an early day motion in parliament.
The early day motion says: “[This House…] notes that the government proposed in March 2015 to extend pensions freedoms to existing annuity holders, by introducing a secondary market for commutation to be introduced in 2017; acknowledges that in October 2016 the government announced it would no longer be proceeding with this policy.
“[This House…] regrets the government’s statement that there are currently no plans to change policy to level the playing field; recognises that retirees may need to access funds from their annuity in times of need; and calls on the government to legislate to allow five million retirees to safely partially sell their annuity.”
The government scrapped plans to create a second hand annuities market in October 2016 saying the consumer protections required could “undermine the market’s development”.
Due to current policy, Masterton says that many of the retirees are “stuck with very small, poor value annuities” that provide “no meaningful benefit”.