Call to change rule on compulsory annuities
A report calling on the Government to change the rules which oblige penioners to purchase an annuity as soon as they reach 75 has been released by the Social Market Foundation (SMF). The report into the way pension funds can be drawn on by pensioners in retirement was commissioned by Winterthur Life and its subsidiary, personal Pension Management Ltd. The obligation to purchase an annuity is a burden on pensioners at a time when annuity rates are low, the report says. The report concludes that the only winners in the current system are annuity salesmen, and that the socially prefedrable option must be a complete abolition of the compulsory purchase requirement. SMF director Phil Collins said the report showed that, under the present system, “flexibility and choice for those who choose to invest in their future was sadly lacking”. #See “Latest News” at this web site for more news on the long term care sector.