Pensions: Retirees can sell annuities from April 2017
Pensioners will be able to sell their annuities for a lump sum from April 2017, the government has confirmed. It means that people who have bought an income for life with their pension pots will be able to reverse that deal. The government says it will bring in safeguards to help people avoid making bad decisions when selling annuities. For most people, keeping their annuity will still be the right decision, said the Pensions Minister Baroness Ros Altmann.
What is an annuity?
The government estimates that around five million people have bought annuities, and that they receive a total income of £13bn a year. Currently, it is possible to sell an annuity, but a tax charge of between 55% and 70% makes it an impractical option for most people. But among the proposed changes, individuals who receive a lump sum from selling their annuity will only pay tax at their highest marginal income tax rate.
Read more on this article: BBC News