The low down on annuities

Age 75 The age by which the annuitant must purchase an annuity if they do not intend to go into ASP. Alternatively secured pension ASP was introduced in April 2006 in response to objections from religious groups opposed to annuitisation. ASP enables people to remain invested in the markets after the age of 75 - good news to those who find annuities inflexible or would prefer to defer their annuity purchase. However, ASP has been heavily taxed by the government as a means of making it less attractive. On death the remaining fund can only be used to either provide an income for depend...