Extending pension freedoms to existing pensioners
March 18, 2015
By: Peter McDonald, Pensions partner
We welcome greater freedom of choice and flexibility within the pensions annuity market. However, it remains to be seen how the industry will enable the changes and ensure that existing annuity holders do not make poor choices in the rush to cash-in. This further flexibility comes on top of industry-wide changes announced by the Chancellor last year which many employers and trustees are still getting to grips with.
With recent changes to pensions regulations, it will take time for the insurance industry to adapt. Retirees cannot be expected to make the right decisions on their own and the chancellor's announcement to consult on how to ensure individuals can access the right guidance and advice on selling their annuity is welcome.