The Government launches a consultation on removing the requirement to annuitise by age

Financial Secretary to the Treasury, Mark Hoban MP, announced on 15 July, the start of an 8 week consultation on removing the effective requirement to annuitise by age 75, following the announcement in the June Budget that these rules will end from April 2011.

The consultation document sets out proposals that will simplify the treatment of retirement savings and reduce complexity for individuals as well as for pension and annuity providers.

The reforms will give individuals greater flexibility to choose the retirement options that are best for them, with more choice over how they can provide a retirement income for themselves.

Mark Hoban said:

"This Government is committed to fostering a new culture of saving and responsibility in the UK. To encourage people to take greater responsibility for their financial future, including in retirement, we need to give people greater flexibilty over how they use the savings they have accumulated. This consultation puts forward reforms that will replace outdated and overly complex pensions tax rules with a new system that gives individuals greater freedom and choice."

The Government welcomes views from interested parties on how the reforms can best be Implemented. In particular the proposed new tax framework, the proposed safeguards against individuals prematurely exhausting savings, and how to minimise unnecessary burdens for individuals and industry.