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Needs must in targeted Budget

The Chancellor will stick to his guns and not try to bribe the electorate with a give-away Budget. There will be targeted tax cuts for those in most need. Families and pensioners will be the winners.

I expect to see some changes in respect of pensions and annuities. It is no secret that annuities are not an ideal solution to providing income in retirement. If it is not bad enough that you forfeit most of your accrued capital once you buy an annuity, this is made worse by the low annuity rates which come with a low-inflation, low-interest-rate environment.

Raising the age at which you must buy your annuity from 75 to 80 would be a help but I would like to see more than this. I hope to see the instigation of an industry consultation to discuss the ending of compulsory annuity purchase. It is imperative that individuals are given much more flexibility to decide how to generate their retirement income.

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