The Conservatives will take their plea for annuity reform to the House of Lords if their bid to bring an end to compulsory annuities fails in the House of Commons this week.
The Pensions Bill reaches the final stages of committee this week and Shadow pensions minister Nigel Waterson says he intends to table an annuity-related amendment.
The Conservatives are not confident that their amendment will be successful and are looking for support from the Lords. At present, anyone with a money-purchase scheme or personal pension must spend at least three-quarters of their fund on an annuity before they reach 75.
Hargreaves Lansdown pensions research manager Tom McPhail says: “I would question whether the Conservatives' insistence on addressing annuity reform is necessary. Around half of all pension funds are smaller than £15,000 and these people will now not have to buy an annuity.”