The work and pensions select committee chairman has slammed the Conservatives for calling for an end to forced annuitisation and putting pressure on the Asp issue, describing their stance as a “charade”.
Speaking at the ABI Savers Summit last week, Labour MP Terry Rooney said the Tories did not end forced annuitisation when in power and it is an “easy path to go down” for an opposition party.
Rooney told delegates that ending forced annuitisation was a “seductive” argument but there are huge barriers with regard to inheritance tax and tax relief changes that would have to be made.
The Tories have tabled a number of private member bills to end forced annuitisation and have been committed to the change since 1998.
Tory Shadow Chancellor George Osborne told a Pima conference earlier this month a Tory Government would overhaul annuity rules.
Rooney said: “You have to chuckle about what the Tories are saying now, yet they knew about this issue for 18 years when they were in Government and could have done something, but did not.”
Hargreaves Lansdown head of pensions research Tom McPhail says: “The pension landscape has changed so much in 10 years. The Tories introduced pension drawdown and I believe an end to forced annuitisation would have been next.”