ACA: Use small pots to buy fixed-term annuities

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...