Aegon UK has produced 10 top tips for those considering selling their annuity market launches next year (Annuity Advice)
Reforms unveiled in December will allow people currently drawing annuities to sell their contracts from 6 April 2017, extending at-retirement reforms announced in the Budget two years ago.
Advice will be compulsory for those with larger pots, but last month Financial Advisor reported that advisers were shunning talks to develop an annuity resale market due to fears of future miss-selling claims, in what could be fatal blow to the government’s plans.
The Department for Work and Pensions and the Financial Conduct Authority have confirmed they will not force advisers to help clients sell their annuities.
To help advisers guide their clients through some of the issues they need to consider, Aegon has produced a checklist they can share to get them thinking about their options.
Steven Cameron, pensions director at Aegon UK, pointed out that the government itself has admitted that for most people, keeping an annuity would be the right decision , while the regulator has highlighted many risks of consumers losing out.
Mr Cameron said: “As many people with annuities are elderly, the regulator wants to make sure any vulnerable individuals are protected.”
(FTAdviser, May, 2016)
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