Osborne forges ahead with second-hand annuities reform

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The Government is to press ahead with plans to allow pensions to sell-off their annuities and will unveil a consumer protection package next month.

The proposals will come as part of a response to a now-closed consultation on the reforms due in December.

The Chancellor announced plans to expand the existing pension freedoms to annuitants in the March Budget, only to delay the launch of the programme to 2017 just months later.

Earlier this month, Money Marketing revealed Treasury officials had held talks with the industry over how to advance the plans.

Money Marketing understands an option under consideration is for the Association of British Insurers to develop a portal that would connect potential buyers and sellers of annuities and facilitate transactions. The aim is to protect consumers from unscrupulous firms looking to capitalise on the market.

Another option is for deals to be facilitated through brokers.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Whichever way this is still going to be a horribly complex process and also I think that that the expectations of potential sellers will need to be managed ahead of any secondary market release as I suspect that when annuities do change hands they will be on terms preferable to the buyer and not the seller.

  2. Another idea that is made to look as if he is doing people a favour while he mugs them while they aren’t looking.

  3. The aim is to protect consumers from unscrupulous firms looking to capitalise on the market. – So that’s all the insurers excluded then !!!

  4. Another pensions disaster looms. What can they be thinking of? For Osborne it’s almost certainly accelerated tax. What is Altman doing about this. Her conversion from ‘pensioners champion’ to Government lacky has taken place faster than you can say ‘ministerial expense claims’. What an utter sell-out.

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