The annuity campaign was given a further boost last week with the selection of David Curry MP's priv...
The annuity campaign was given a further boost last week with the selection of David Curry MP's private member's bill calling for greater investment flexibility on pensions savings.
Curry's bill will include the key proposals of the Retirement Income Reform Campaign report published in March 2000. The central plank of the bill is a proposal that pensioners buy an index-linked mini annuity to meet a minimum retirement income. Once a minimum retirement income has been guaranteed, ensuring that pensioners do not need to rely on means tested benefits, the bill proposes that retired people should be able to invest the rest of their fund in a retirement income account. Curry also called for the maintenance of the current 25% tax free lump sum on retirement.
Oonagh MacDonald, director of the Retirement Income Reform Campaign, said: 'Curry's bill is tremendous news. With millions desperate to see change, this is a very welcome development and an excellent opportunity which we believe will receive cross-party support.'
Campaigners for annuity reform acknowledge that the private member's bill has very little chance of making it to the statute book but they said that it was important that the issue was kept in the public eye. Howard Flight, shadow secretary to the Treasury, added: 'It is fundamental to keep up the pressure, I have a question tabled to ask Alastair Darling in the next session.'
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The majority of financial advisers (85%) believe the number of self-invested personal pension (SIPP) providers will continue to fall in the coming year, according to Dentons Pension Management research.
Short-term noise or something sinister?