The Association of British Insurers (ABI) has revealed their plan for changes to pension annuities. They are suggesting that people should not be forced to buy an annuity until they are 80. The current maximum age before you are compelled to buy annuity is 75. The ABI’s own Maggie Craig commented that those with defined contribution (DC) pensions may require better solutions for retirement income in the future.
She said that “The UK pension landscape is undergoing huge change, with the numbers drawing benefits from DC pension savings in 2010 set to exceed 500,000.” Earlier in 2009 the ABI said that changes needed to be made to the “wake-up” packs that those on the brink of retirement are sent. They said that better advice needed to be given about the option available to people to shop around for an annuity, called using the open market option (OMO).
