Millions of pension savers will be prevented from taking cash freely from their retirement funds next April unless they pay hefty penalties that could slash their pots by more than 20%, according to reports.
The government has decided not to force schemes to offer its much-vaunted new pension freedoms for the over-55s, according to the Sunday Times. The report explained while the the government would introduce a "permissive statutory override" there is nothing to force them to offer flexibility. Analysts told the paper many providers will refuse to invest in the new technology required to implement the changes. The new regime, announced in the Budget in March, aims to remove the need for retirees to buy an annuity, which can offer poor value. Annuity sales have dropped 43.8% year o...
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