Telephone: 01539 725855 – no phone menus – talk to a real person today who can direct you to what you need

Annuities have received quite a lot of press in recent years but for all the wrong reasons. Pension providers have been criticised for offering low annuity rates (considerably lower than they were ten years ago) which can seem to be a rather poor value for money option for retirees.

Following the pensions freedom legislation changes earlier this year, the Government is considering a change in the law which would give the 5.5 million people already taking an income from their pension, the right to sell their annuities. This would provide them with the same flexibility on how they wish to spend their pension savings, as those who have not yet retired.

It is expected that insurance companies will not have access to this second-hand annuity market and so third parties would be able to buy them. These companies are likely to insist on medical underwriting and charging substantial fees for re-selling meaning annuitants could be disappointed with the amount they're offered. That said, according to research by YouGov on behalf of investment manager Tilney Bestinvest, 17% of the 1,800 surveyed would consider swapping their guaranteed income for a cash lump sum. 33% of those surveyed said that they did not plan to sell their annuity, and 50% were unsure. (source: YahooFinance UK)

We're yet to hear from the Chancellor if and when this will be introduced - which might keep us waiting until the next budget to find out more.

If you have any queries regarding your pension or preparing for retirement, please give one of our friendly planners a call on 01539 725855

or click here to complete our enquiry form and someone will be in touch with you as soon as possible.

Read more about retirement planning...

More from our blog

  • Blog image

    Local Heroes!

    13 July 2015

    We have taken a conscious decision over the last few years to use local suppliers where possible. We understand that national firms bring employment to the region too, but as an independent Kendal

  • Blog image

    Family Planning…

    21 July 2015

    As a fairly new Granddad, I was flicking through some photos the other day, (well actually scrolling through my camera memory card - but you know what I mean!) when I came across this picture of FMB

  • Earlier this week I was talking to friends when someone reminded me that this coming Monday was the summer bank holiday; spelling the end to our summer... well what we've had of it anyway! After that,

Notices and promotions

  • Click to Subscribe to Our Newsletter
© Financial Management Bureau Ltd 2011 - 2017. All rights reserved.
Financial Management Bureau Ltd is a limited company registered in England and Wales. Registered office: Shenstone House, Helsington, Kendal, Cumbria LA8 8AA. Registered number: 02089786