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Pressure is mounting to scrap compulsory purchase

Annuity experts are predicting the Government may change the rules on the compulsory purchase of annuities in the Chancellor&#39s spring Budget.

Experts are hoping the Government will succumb to mounting pressure from lobbyists who believe the rules restrict individual choice and that compulsory purchase at 75 is based on outdated mortality expectations.

Winterthur Life strategic pensions manager Mike Morrison, who has been in regular dialogue with economic secretary to the Trea sury, believes the Govern ment could change rules which force pensioners to buy an annuity.

He says: “From the Treas ury&#39s perspective, if people are put off by the idea of compulsory purchase, then they are less likely to want to contribute to a pension, which goes against one of the Government&#39s main objectives.”

Annuity Bureau director Ronnie Lymburn says: “I would be surprised if there was not an announcement as the Treasury is under increasing pressure, particularly to move the compulsory purchase age to 80, which would give them some thinking time before any further reforms.”

But Annuity Direct managing director Stuart Bayliss says: “If the Government feels enough pressure, you could expect them to announce upping the age limit to 80 but if I had to put money on it I would say they are still looking at research and the pros and cons of any changes.”


Nationwide demutualisation campaign setback

The campaign to demutualise Nationwide suffered a setback as Stephen Major, the plumber from Northern Ireland, withdrew his support. Major, who led the campaign that brought about Bradford & Bingley&#39s conversion last month, said he did not think the campaign would succeed and now believes that any windfall will not compensate for the loss of […]

IFAP sets up freefone consumer hotline

IFA Promotion has set up a freefone consumer hotline offering information on local IFAs. IFAP will be phasing out its existing hotline number. The aim is to further boost enquiries to IFAP following its busiest year yet in 2000, with over 130,000 people contacting IFAP, an increase of 44 per cent on 1999. Callers to […]

Three year discount from Derbyshire

Derbyshire Building Society has introduced the three year discount mortgage. The mortgage is aimed at first time buyers and people who are looking to remortgage their properties. It has a discount of 1.49 per cent from the societies standard variable rate for the first three years of the mortgage for loans of up to 95 […]

James Hay sipps the fruits of external funds

Parrott says: “This offers a very good opportunity to revisit existing PPP clients and to attract those who are not getting much from their existing providers. The plan offers full Sipp benefits at equal or even lower cost than most standard insured PPPs. Many insurance companies will need to take this on board. There is […]


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