A rule that requires all pension savers to purchase an annuity by age 75 will cease next year, the government announced on 22 June. Initially at least, the age will be revised up to 77, with a consultation process on whether the rule should be removed altogether.
According to the emergency Budget document: ‘The government will end the existing rules that create an effective obligation to purchase an annuity by age 75 from April 2011 to enable individuals to make more flexible use of their pension savings’.
‘The government will shortly launch a consultation on the detail of this change and will introduce transitional measures for those yet to secure a retirement income who will reach 75 in the meantime’, it said.
