The Government has again been defeated on key issues regarding amendments to the Pensions Bill, following the House of Lords' backing to scrap the rule forcing pensioners to buy an annuity at age 75.
In the Lord's third and final reading of the Bill yesterday, peers voted by a clear majority of 198 votes to 144 in favour of a clause offered by Lord Higgins (C) and Lord Oaskhott (LibDem). Currently, law requires private pension savers to use three-quarters of their pension savings to buy an annuity but an amendment would put an end to this. Lord Higgins said the rule was "unfair", citing the recent drop in annuity returns. The government is likely to stand firm, however. Junior work and pensions minister Baroness Hollis argued pension savings already attracted large tax breaks, w...
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