Pensions - Articles - ABI's requirements for secondary annuity market to work


The ABI today sets out what is needed to ensure that the Government’s plans to create a secondary market for the selling of annuities can work for consumers. In its submission to the Government’s consultation, the ABI expresses its support in principle for the reforms but urges for the implementation not to be rushed, given the considerable challenges in establishing a functioning market and ensuring adequate protection for consumers, especially access to advice and guidance.

 • Important to get the detail right, and not rush towards April 2016 start date
  
 The ABI’s response sets out what is needed to ensure the proposals deliver for customers. Clarity is needed around:
 How the rights of dependents and beneficiaries will be protected, particularly as many of them will be older people who may be vulnerable due to illnesses and reduced mental capacity.
  
 How we will protect people from scams and fraud.
 The exact scope of the proposals, which must be well defined, so that consumers are clear about exactly what is included.
 Whether consumers are allowed to sell their annuities back to the provider they originally bought them from, recognising that providers are not obliged to ‘buy back’.
  
 Dr Yvonne Braun, Director of Long Term Savings Strategy, Association of British Insurers, said:
 “The Government’s proposals to create a secondary annuity market will potentially extend the Freedom and Choice reforms, and we want them to work for customers. Naturally there are considerable challenges in establishing a functioning market, and many unresolved complex legal, regulatory and prudential questions.
  
 “We want to work with Government to help resolve these issues, but given the lessons learned from the Freedom and Choice reforms and the need for clarity in many areas, we urge the Government not to rush these proposals through for 2016. Allowing more time will ensure an appropriate regulatory regime can be developed to give this new market a chance to succeed.”

Back to Index


Similar News to this Story

94 percent view State Pension as an entitlement not benefit
Majority of adults aged 66+ say that Triple Lock is affordable and fair to older generations. Around one in seven rely on the State Pension to provide
Fair play off the pitch
Male players in the English Premier League earn an average of more than £3 million per year, while their female counterparts average around £47,000. T
Why Bitcoin matters to Pension Schemes
Back in November 2024, Cartwright Pension Trusts announced its role in facilitating the first-ever UK DB pension trust investment in Bitcoin. With the

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.