People who were forced to buy annuities deserve their freedom backby Ros Altmann / October 31, 2016 / Leave a comment
A few days ago, the government reversed its decision to allow pensioners to sell back annuities that they were forced to buy due to past restrictions. I firmly believe that this U-turn is wrong.
When people buy an annuity, they hand over their pension savings to an insurance company in exchange for an income for the rest of their life. Until 2015, people were often forced to buy annuities as a result of restrictive pension rules, which have now been relaxed. Many people would not have purchased an annuity if they did not have to, and some may have bought the wrong type for their needs. Having been promised the chance to exchange the income for a cash lump sum, thousands of people will now feel dreadfully let down, and may be stuck with a product that is of little value to them.