Pensions minister Steve Webb has put annuity reform at the top of his wish list should he remain in post after the election.
Speaking to NAPF Conference delegates Webb said he would like to see annuitants offered the opportunity to convert their income for a capital sum.
"We can't do anything about this before the next election but if I am part of the next government it's an area I would like to look at," he said. "It could be helpful for those who have a small pension pot for whom a small income may not be a game changer but a capital sum might be. However, we would need to find the right price."
When asked whether such a move would be used to only help those who annuitised shortly before the Budget Webb said he would be reluctant to restrict it.
"I wouldn't want to restrict it because people might want access to capital at different points in their retirement," he said. "However, there are issues as to what the cost might be, sales of assets etc."
Webb's other long term goals include raising auto-enrolment minimum contributions above 8% though he ruled out making increases compulsory.
"Eight per cent is not enough - we need to get beyond this," he said. "I would say the case for compulsion was stronger say two years ago but given that we have 90% of the auto-enrolment population participating voluntarily I don't think it is the right way to go. We shouldn't look to force those who have decided to opt out to save into a pension."
He believes default auto-escalation will be the best way of raising contribution rates whereby extra contributions are made automatically with every pay rise.
"I think this is probably the best answer for the 8% is not enough," he said. "We've managed to get everyone in to a pension now we need to get everyone's contributions up."
First mentioned in Cridland Report
Second acquisition of 2019
Guy Opperman has rejected calls to speed up changes to auto-enrolment (AE) despite increasing pressure to boost contribution rates and overall savings pots.
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