Joanne Segars (NAPF) comments on the Chancellor’s plan to extend its pension freedoms

Joanne Segars (NAPF) comments on the Chancellor’s plan to extend its pension freedoms

The National Association of Pension Funds (NAPF) has commented on the Chancellor’s plan to extend its pension freedoms to around 5 million people, by allowing current pensioners to sell their annuities on the open market.

Joanne Segars, Chief Executive, National Association of Pension Funds, said:

“It’s clear to see how this fits with this Government’s agenda for pensions but what is less clear is how savers will be protected. A full consultation will be essential to ensure a fair and balanced market is created.

“The consultation would need to look at how the buy-back price of an annuity would be calculated so people selling their annuity could be assured of good value; and also consider a prescribed process for introducing buyers and sellers to avoid excess costs, which would inevitably be carried by the consumer. And clearly, if this comes into effect the Pension Wise service would also have to be equipped to provide thorough guidance on this topic.

“This suggested reform should not distract us from or undermine the Freedom & Choice reforms which are due to begin imminently. The Government will need to make sure this doesn’t divert focus or resource from Pension Wise, damage the broader annuity market or slow down the development of a much-needed market in retirement solutions.”

Categories: News, UK Pensions
Tags: NAPF, Regulation

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