Money back schemes offer relief to pensioners

The proposed money back annuities being planned by Prudential and Norwich Union would allow pensioners who die soon after the purchase of their annuity to leave the remaining amount of their original capital to their heirs. Last year in its recommendations to the Government, the Annuity Bureau suggested capital protected annuities would allay people's dislike of a system whereby, on death, any residual pension fund transfers to the coffers of the insurance company.