News updates

21 October 2016

Main News

Plans for secondary annuities cancelled

The government is no longer introducing a secondary annuities market.
The government announced in the March 2015 Budget that it planned to allow people to sell their pension annuities for a cash lump sum. However, these plans have now been cancelled.
 
RPS pensions are not provided by an annuity so would not have been affected by these plans. But if you received any additional annuity income from an insurance company then that may have been.
 
The government has indicated that, although many firms were willing to allow annuities to be sold, there were not so many that were prepared to buy them. This could have led to poor cash offers, high charges and also the possibility that tax would need to be paid on the lump sum. This could have left many people worse off.
 
Simon Kirby, Economic Secretary to the Treasury, said: “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 I am not prepared to do.”
 
More information is available at the GOV.uk website.
Place icon

This might interest you...

Take control today

If you are an active or preserved member, you can view your pension details and choices by registering for your personal myRPS account - the easiest way to monitor and manage your benefits.  SIGN UP NOW »