With so much money being wiped off the value of the stock market, ministers have considered changing the rules which stipulate that retirees must purchase an annuity by the time they are 75. We know that in 2010 the minimum age for buying an annuity will increase from 50 to 55, but some now believe that the government should go further and change the rules completely. Pension rules look like they will be shaken up by the Conservatives who are promising wide ranging pension reform should they be elected.
Although in the past few months the stock market has been performing better, overall, the last 24 months has seen huge falls in the various funds where annuitants money is invested. With tumbling returns, no wonder some are calling for the rules to be changed. Some in the pension industry say that the requirement to buy an annuity should be abolished altogether.
However there are some alternatives to those approaching retirement without an annuity. Instead of purchasing a conventional annuity, you are able to secure what is known as an ‘alternatively secured pension’ which is form of income drawdown similar to an unsecured pension. This gives you more control over your pension fund and what investments are made, but restricts the amount if income that can be taken.
Related posts:
- Dr Ros Altmann says new pension rules will not benefit the many
- Rush to buy Pension Annuities as new EU rules come into force
- Will the new pension rules mean better annuity rates?
- Minimum Income Requirement (MIR) for annuities – do you have enough saved?
- UK Pension Annuity Providers to raise £50 billion under new EU rules
