Govt rips up compulsory annuitisation rules; ASP axed

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The Government today proposed bringing to an end rules forcing pension investors to buy an annuity at a specific age.

It says, from April 2011, there should no longer be a deadline by which people "effectively have to annuitise". In a consultation paper published today, it says retirees will be able to choose how much to draw down annually from their pension pot throughout their retirement, subject to a capped limit, or whether to draw any income at all. It proposes both capped and flexible drawdown options for private pension savers before and after age 75, adding this will make it unnecessary to continue to offer alternatively secured pensions (ASPs). As part of the flexible option, the Govern...

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