The pension freedoms will allow those who have already taken an income the chance to sell their annuity back to an insurer company — but should they do that?
In the Budget this year, the Chancellor announced plans for a second-hand annuity market that would allow the 5.5 million people already taking an income from their pension the right to exchange this for cash.
It is just a proposal, but the idea is that from April 2016 this will give the same freedom of choice to everyone with a pension, regardless of what type of deal they have.
But while this could prove to be a lifeline for some, even the Government has admitted it is likely to provide value for money for only a few.
By using the Budget assumptions, industry experts believe that the second-hand annuity service could be used by only 100,000 people.
So, what could you reasonably expect to get from selling back your annuity to an insurer?
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