Calls for end to automatic annuity purchases

clock

Pensions campaigner Ros Altmann is leading calls for a ban on automatic annuity purchases.

Altmann said the practice of providers converting savings into an annuity income for customers, then keeping the proceeds should contact with the customer be lost, should be "banned immediately". The income is often kept in a holding account until a policyholder gets in touch, but the provider will keep the cash if no claim is made. Descendants, though entitled to claim a relative's pension savings, cannot do so for annuity proceeds, Altmann said. "If there was no automatic annuity purchase the customer could always come along later and take their money out," Altmann, quoted in the Te...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

HMRC pays back £44m on overtaxed pension withdrawals

HMRC pays back £44m on overtaxed pension withdrawals

‘Outdated’ PAYE system causing headaches for people accessing pots

Jenna Brown
clock 24 October 2024 • 2 min read
Govt must act on decumulation support to ensure better outcomes

Govt must act on decumulation support to ensure better outcomes

Standard Life sets out three key decumulation policy asks

Jenna Brown
clock 23 October 2024 • 2 min read
Aegon calls for 'cool heads' as Budget speculation continues

Aegon calls for 'cool heads' as Budget speculation continues

Pre-Budget speculation over pensions tax reaches ‘boiling point’

Isabel Baxter
clock 23 October 2024 • 3 min read