Add Your Idea

ANNUITY PURCHASE FROM PENSION FUND MONIES

Comment 15th July 2010

Scrap the requirement to buy an annuity, at any age, with the proceeds of a pension fund!

It is a very outdated concept, and people should be free to use the funds saved as they wish to fund there retirement, and have their savings available to pass on or spend as they wish.

Why does this matter?

Years ago, before the internet and communications revolution, and before the growth of financial services, the ordinary "man-in-the-street" may not have had the knowledge of how to generate an income from a pension fund, but nowadays that is to a far greater extent not the case.

Why should people who have saved not be able to decide themselves where they wish to invest their own funds for a return that they want??

Why does "the government" think it knows best??

Fair go, the coalition has moved a step in the right direction by raising the age at which annuties have to be purchased, but the next step must be to do away with that requirement entirely.

HMRC will moan and claim that tax should be paid on capital sums, but why should they be taxed? Yes it is a complicated issue, but that should be no reason not to act sooner rather than later.

If tax relief was lifted from payments into pension funds, with the quid pro quo that funds accumulated would be free of taxes –  other than basic income tax on income generated – there should be no objections from HMRC.  Such a system could be phased in – as is the gradual rasing of the state pension age!


1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

Highlighted posts


Comment on this idea

Good idea? Bad idea? Let us know your thoughts.


Back to top
Add Your Idea