Government throws out right to sell annuities in exchange for cash

Government throws out right to sell annuities in exchange for cash

GETTYMinisters feared people could lose their savings at the hands of pension scammersMinisters feared people could lose their savings at the hands of pension scammers and unscrupulous fund managers. There were also concerns that many retirees could finish up worse off after paying up-front fees of more than 20 per cent. Furthermore, major insurers refused to take part in the scheme. It marks the latest shift by Chancellor Philip Hammond away from the policies of his predecessor George Osborne, who promised to to let people sell their annuities. GETTYIt marks the latest shift by Chancellor Philip Hammond away from the policies of his predecessorTom Selby, a senior analyst at AJ Bell said: “The plans were always riddled with problems. The plans were always riddled with problems Tom Selby “The market would have been stacked in favour of the buyer and posed unacceptable risks to savers, who could have seen the value of their pot ravaged by charges. GETTYThe move would let pensioners locked into record low rates escape the annuity policies“Pension scammers would also inevitably have seized on the changes to target annuity holders. It was difficult to see a long term market where consumers would have…

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