Annuity reselling plans abandoned by government

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Annuity re-selling plans abandoned by government

The government has abandoned plans to let pensioners raise money by selling their annuities to insurance firms.

The controversial idea was first aired in the March 2015 Budget by the then Chancellor George Osborne as part of his plan for “pension freedoms”.

Despite deciding last December that the plan would go ahead next April, the government has changed its mind.

It admitted that too many pensioners might be lured into making the wrong decision.

Acknowledging that most people would be best advised to stick with their current annuities, the Economic Secretary to the Treasury, Simon Kirby, said: “Allowing consumers to sell on their annuity income was always dependent on balancing the creation of an effective market with making sure consumers are properly protected.”

“It has become clear that we cannot guarantee consumers will get good value for money in a market that is likely to be small and limited.

“Pursuing this policy in these circumstances would put consumers at risk – this is something that I am not prepared to do,” he added.