The Treasury is taking a fresh look at amending the rules on compulsory annuity purchase at age 75, ...
The Treasury is taking a fresh look at amending the rules on compulsory annuity purchase at age 75, writes Mohamed Ali Bernat.
Last week a team from Winterthur Life, including chief executive John Finan and pensions strategy manager Mike Morrison, consulted with Treasury minister Melanie Johnson.
Under current provisions, individuals of retirement age with their own provisions must purchase an annuity for their income by the age of 75, giving up their right to continue to manage the pension fund they have built up, and losing the ability to pass the fund down to their dependants on death.
Morrison said the meeting had been a good starting point for putting annuity compulsion back at the top of the agenda and it showed the Government was considering making changes.
He added: "It's a good sign that the Treasury invited us in. They didn't say they were going to make wholesale changes as soon as possible but they wanted to hear our side of the debate."
Morrison said the Treasury was mainly concerned with a replacement tax proposal if annuities are abandoned and wanted to know how many people would be affected by the change.
Another meeting has been agreed between the two parties and Morrison hopes the industry would put forward their views to allow him to go back to the Treasury with a consensus from providers and IFAs on the issue.
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