Are second-hand annuities a disaster waiting to happen?

In the UK, we have a history of developing over-complicated pension products. Even if they start simple, sooner or later, layer upon layer of complexity is added by governments, regulators, lawyers and the taxman, to name but a few. Professional advisers battle to keep up with ever-changing rules and opportunities abound for the unscrupulous to take advantage of the unwary or ill-advised. History has shown that with a major change in the pensions framework, mis-selling scandals often ensue and pension remediation costs rise. One of the most recent ideas has come from the afterma...