Driving home last night listening to the news on the radio brought a smile to my face.
Our previous chancellor George Osborne announced that from April 2017 anyone who had purchased an annuity would be able to sell this and obtain a lump sum. Quite how this would work in the market place no one had a clue. It was clear that the majority of pension annuity providers did not want to get involved.
The basis of the first announcement was to extend the pension freedoms which came into play in April 2015.
Was this a gimmick ? In my opinion it had not been thought through and I just wish that governments would stop this constant tinkering with pensions and provide some form of stability. We live in hope.
So anyone who thought they could sell their annuity and raise a lump sum and forgo income is going to be sadly disappointed as the selling of annuities will be scraped due to a lack of interest by the pension providers.
Yes I told you so, just not workable.
We still have the pension freedoms but is this another nail in the coffin for annuities.