Retirement: Plans to allow pensioners to sell Annuities are scrapped

Yellow road sign saying changes ahead with blue cloudy skyThe Government has scrapped plans which would have allowed pensioners to sell their Annuities on the open market, in exchange for a lump sum. George Osborne originally announced the plans in March 2015, as a way of extending Pensions Freedom to people who had already retired. However, the proposal has been widely criticised, delayed and now been scrapped. Announcing the decision, a Government statement said: ““After an extensive programme of engagement with industry, financial regulators and consumer groups, the government has decided not ...

Savings: Popularity of ISAs on the decline

Popularity of ISAs on the declineFor years Individual Savings Accounts, ISAs for short, have been the most popular option for savers and investors alike. However, it now appears they are declining in popularity. Figures released by HMRC show that the number of adults taking out ISAs has fallen to an all-time low with 13 million opened in the 2014/15 tax year; a fall of half a million on the previous tax-year. The drop comes despite the Government trying to encourage long term saving, by increasing the amount which can be paid into ...

60,000 people use Pension Freedoms – 8 pitfalls to look out for if you plan to join them

60,000 people use Pension Freedoms - 8 pitfalls to look out for if you plan to join themThe Chancellor, George Osborne, recently told the House of Commons that 60,000 people have withdrawn more than £1 billion from their pensions since new freedoms were introduced in April. Whilst Mr Osborne said that the figures showed Pension Freedoms has been a "success” he went on to say, "…but we have to make sure that people get the best advice…" presumably to stop them making mistakes and falling into some of the pitfalls which ...

Retirement: With rates at an all-time low, why would you buy an Annuity?

With rates at an all-time low, why would you buy an Annuity? Last week research was published by Moneyfacts which revealed that rates on standard Annuities, which do not take into account your health, are at an all-time low. Furthermore with gilt yields falling and Pensions Freedom reducing the number of people choosing this option, it’s worth asking, why would you buy an Annuity? Since the Budget last year, and the announcement of Pensions Freedom, the humble Annuity has been tainted as something of a toxic product by some sections of the financial ...