The Government’s plan to end compulsory annuitisation at 75 (1) seems a fair one on the surface. How can it be fair that someone is forced to buy a product by a specific age. It is particularly of concern if at the time of your 75th birthday, the stock markets are relatively low and you may get less money than your neighbour with similar pension savings who retired two years earlier. (That said, nobody is of course forced to annuitise on their 75th birthday and everyone does have 20 years before that to choose an appropriate time to annuities.)
Monthly Archives: May 2010
In Defence of Annuities
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Will “senior playgrounds” encourage exercise?
This week Westminster Council opened its very first “pensioner’s playground” in Hyde Park, central London named “Hyde Park Senior Playground”. The playground is equipped with exercise machines including a cross trainer and a stationary bike, which according to the Council will provide older residents with gentle exercise [1+ 2].
Solvency II may endanger retirement outcomes for future pensioners
The European Commission is today hosting a public forum on its Level 2 implementing measures for Solvency II, the new Europe-wide regulatory regime for insurance companies. The details were compiled following advice from the Committee on European Insurance and Occupational Pensions Supervisors (CEIOPS) [1] and in consultation with industry and professional stakeholders. Whilst aimed at insurers rather than pension funds, the regulations could have a significant impact on the annuities market, a key component of the UK pensions system.