The Conservatives have said that pension simplification has ended forced annuities at the age of 75, and 'opened the door for their proposed retirement income fund'. They believe that rules brought in to accommodate a number of groups, who have a religious opposition to annuitisation, mean that there should be no obstacles in the way of their proposals.
Under the proposals for an 'alternative' alternatively secured pension (ASP), a minimum income requirement would be set out, and reviewed each year by the Chancellor. Pensioners would be free to draw down funds as they see fit.
Worries about people exploiting the system to pass money on after death, would be dealt with by creating an inheritance tax regime for the leftover funds. They believe this proposal would be more flexible, remove market demand and ease supply and pricing.
Our view
We see no reason to amend the existing rules that started on 6 April 2006 for Unsecured and Alternatively Secured Pension income in retirement.
Why is it that all political parties never agree with another on product development for financial services and each time there is a change in Government, Tory products replace Labour products and vice versa - just adding more confusion.
Most politicians know very little about financial services anyway yet we allow them to run amock.
Stop trying to fix a product that is not broken. Need some help at retirement? Book a callback from us.