Annuities, unemployment, property and fraud

The Treasury’s decision to abandon plans to let pensioners raise money by selling their annuities has been welcomed by the pensions industry.

The controversial idea was first aired in March 2015 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 now changed its mind. The Government admitted that too many pensioners might be lured into selling their annuities – an income for life – in exchange for a lump sum. The Association of British Insurers (ABI) said it was the ‘right decision’. Meanwhile, Paul Green, director of communications at Saga, said: ‘This is a surprising announcement. The development of this kind of market was always going to be complex, and we await more detail about the consumer protections that the Government felt this market was unable to provide.’ In other news, changes to the state pension, rising inflation and concerns about meeting care costs top the list of income worries for people in the UK approaching and in retirement.