Today the new Coalition Government abolished the rules that compels pension savers to buy an annuity at the age of 75. This means that those savers that do not need income will not be forced to purchase an annuity at age 75. This is seen as excellent news and was widely anticipated by pension savers.
Tom McPhail, a pensions expert at Hargreaves Lansdown, the advisory firm, said: “The announcement of a consultation on abolishing compulsory annuitisation from April 2011 will go a long way towards addressing many people’s instinctive reservations about committing money to a pension.
“This should serve to reinvigorate investors’ appetite for long-term investments.”
