Prudential have decided they will no longer sell annuities through advisers or intermediaries via the open market. A spokesman said: ‘We can confirm that we propose to make a change to conventional annuity business written with financial advisers.’ They have decided from the 17th June 2016 ‘we will no longer accept applications for new external conventional annuity business. There is …
Withdrawals of Pension Pots Drops Down 42%
According to the data from the Financial Conduct Authority (FCA), the total number of customers that took all their pension pot as cash fell 42% during the last quarter of 2015. The Financial Conduct Authority recognized the general fall in access to pensions after a sharp fall following the pension freedoms. The number of individuals who preferred a full withdrawal …
New tax year, new changes for pensions in 2016-2017
The new tax year for 2016-2017 starts today (April 6th) which means new changes, so here is what you need to know. THE NEW STATE PENSION The new ‘single-tier’ state pension starts today which means anyone who reaches pension age from April 6th will get the full flat rate payout of £155.65 per week. This will only apply if you …
Chancellor under pressure to scrap 25% tax free lump sum
Chancellor George Osborne is facing increasing pressure to scrap the 25% tax-free lump sum people can take out of the pension pots ahead of next month’s Budget. Currently people can access 25% of their pension pots tax-free in a single lump sum when they reach 55. Think tank the Institute of Economic Affairs recently proposed the tax-free lump sum should …
Retirees move back to annuities following market volatility
Consumers have been gradually shifting back to annuities for a guaranteed income since the pension freedoms were introduced in April 2015, according to new data. Figures from eValue’s quarterly pension freedoms index covering over 17,000 people showed that in October preference for guaranteed income rose to 47%, up from 33% in April. Meanwhile preference for flexible income (i.e drawdown) dropped …
Second-hand annuities – Pro’s and Con’s
The government has stated that from 2017 pensioners will be able to sell their annuities for a lump sum. This would extend pension freedoms to those who’ve already bought a guaranteed income. But can it really work? We wonder… When pension freedom arrived in April 2015, many people missed out. Those who had already bought a guaranteed income no longer …