The secondary annuity market was originally supposed to be launched in April 2016, but was later pushed back to 2017. Given the potential problems with this, it comes as no surprise to MJB that the plan has now been scrapped by the Government. It would seem that we we’re not alone in our concerns…
John Lawson (Head of Policy Retirement Solutions at Aviva) said: “Our concern was about ensuring good outcomes and the right level of protection for customers. Selling back an income for life would have been a major decision needing crystal clear advice and in many cases may not have been in the customer’s best interests.”
Should this plan have gone ahead there was the likelihood of retirees receiving poor value for their annuities. There was also possibility that the lump sum would be used up too quickly at the outset leaving little funds available to enjoy retirement.
Annuities may still be the best option for some people as they reach retirement. The important thing is to take advice at this point. We would be more than happy to assist.