DWP to investigate small pension annuities

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The DWP will look into improving annuity rates for people with pension pots of under £5,000, pensions minister Steve Webb says.

Currently, people who have less than £5,000 in their pension pot at retirement face difficulty in shopping around. This is because some providers do not offer annuities for less than this figure, or put in place disproportionate pension charges for the sum. Rachel Reeves, shadow pensions minister, asked Webb in a written question: "If he will bring forward proposals to facilitate and reduce the cost of annuitising sums of less than £5,000." Webb writes in reply: "The government recognises some people with pots of less than £5,000 may have difficulties when it comes to annuitisation. ...

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