The recent consultation on ending compulsory annuitisation promises to usher in increased flexibility. However, Mike Morrison warns of potential issues.
As we are all aware, there is currently an HM Treasury consultation paper considering removing the need to buy an annuity at age 75. I have read the consultation document and generally I am in favour of the proposals, but I do feel there is a long way to go before we get to the final rules. In this article, I want to look at a few of the areas where I think that there could be issues and/or unintended consequences. The idea behind ‘capped drawdown’ is fairly straight forward and is just an extension of the current USP regime but without the need to cease at 75. This in itself contains on...
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