ACA: Use small pots to buy fixed-term annuities

clock

Retirees with small pots should be allowed to draw down savings as fixed-term pension to enable them to defer taking a state pension, says the Association of Consulting Actuaries (ACA).

In its response to the Association of British Insurers' (ABI) consultation A New Retirement, the organisation said this could integrate state and private pensions more effectively for many people. Under current rules, deferring the state pension by five years would result in a 26% enhancement to the benefit. The ACA called for a new product range for DC savers and for defined benefit (DB) or hybrid schemes to be able to offer fixed-term drawdown of all or some a member's pot. It argued this would give savers more flexibility and increase confidence in the pension system. It woul...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Income

What next for the income drawdown 'class of 2015'?

What next for the income drawdown 'class of 2015'?

‘Advisers know that retirement planning does not stop at retirement’

Stephen Lowe
clock 28 March 2024 • 5 min read
Retirement income advice: FCA finds 'mixed picture' among case files

Retirement income advice: FCA finds 'mixed picture' among case files

Regulator published outcome of thematic review into retirement income advice

Jenna Brown
clock 20 March 2024 • 5 min read
FCA tells IFAs to review retirement income advice processes

FCA tells IFAs to review retirement income advice processes

Comes after regulator’s thematic review of retirement income advice

Jenna Brown
clock 20 March 2024 • 2 min read