Today's Budget pension reforms will not irreparably damage the annuity market says Just Retirement's customer insight director, Stephen Lowe.
The share prices of insurers such as Legal & General, Just Retirement and Partnership plummeted following the news that the government is consulting on allowing people over age 55 to take their full pension as cash subject to marginal rates of income tax from April 2015. In the meantime minimum income requirements for flexible drawdown would be slashed from £20,000pa to £12,000pa and capped drawdown customers could now take an income of £150% GAD rather than 120%. Delivering the changes Osborne said: "Pensioners will have complete freedom to draw down as much or as little of their pen...
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