The government decided on an abrupt reversal on its decision last December to construct a secondary annuity market.

Senior couple - PensionersIt was announced yesterday that they would not pursue the option of a secondary market, which would have given annuitants the option of selling their annuities in exchange for a cash lump sum.

Originally mooted by George Osbourne as part of pension freedom legislation, the idea was simply that those who had previously committed to an annuity in exchange for their pension pots, would be able to cash them in and receive a lump sum on a secondary market. Ros Altman, a former pensions minister, was a lone voice in expressing disappointment in the decision, saying ‘It will be disappointing to tens of thousands of people who bought an annuity they didn’t want, and didn’t need.’

Most in the industry felt the decision was broadly in the best interest of consumers, including the Association of British Insurers (ABI) who claimed ‘it was the right decision’.

Tom McPhail supported the decision stating that Hargreaves Lansdown had already made a decision not to be part of a secondary annuity market. He said ‘after extensive research, at the beginning of September [we] announced that we would not be participating in the secondary annuity market. The risks to the vast majority of annuity holders outweigh the benefits for the small minority who could benefit’ he pointed out.

The scheme was always considered to be controversial with most claiming that it would be difficult to create a system that didn’t lead to poor consumer outcomes. Part of the problem is that valuing a future income stream can be difficult for those not practised in such affairs. This would ultimately lead to a great many individuals having to take prices that were offered to them with little knowledge about whether they represented value or not.

Pension Advice Bristol

If you would like to speak with one of our Independent Pension Advisors and potentially receive financial advice, please contact us on 0117 923 7652. We are based in CliftonBristol but we are happy to service clients from across the UK and we provide free initial meetings at our client’s convenience.

Churchill Wealth Management Limited is located at 13 Alma Vale Rd, Bristol BS8 2HL, United Kingdom.

About Us: Churchill Wealth Management is a team of independent financial advisors / financial planners (IFAs) based in Clifton, Bristol. Website:

We provide independent financial advice, including pension advice, investment advice, inheritance tax planning, protection/insurance advice and ethical investment advice through our trading style Churchill Ethical Investment –