The New Regulations
New regulations for how individuals may draw their pension in the future
The Government announced in its emergency Budget in June, that it is committed to ending the rules that oblige individuals to buy an annuity by age 75. The Government's view is that giving people the freedom to choose the retirement options which best suit their lifestyle, may help to invigorating personal pension savings.
Consequently, the Government started a period of consultation with industry stakeholders on the subject of removing the requirement to annuitise by age 75. In the interim regulations were introduced to allow individuals to defer their decision to annuitise until age 77.
Prudential's involvement in the consultation
Prudential was actively involved in this consultation process, including sponsoring an expert report produced by the Pensions Institute - 'The unintended consequences of the removal of compulsory annuitisation'.
The Government's announcement specifically refers to the Pensions Policy Institute report which Prudential sponsored (see page 12)
Tools & calculators
