§ Mr. Harry GreenwayTo ask the Secretary of State for Social Security what proposals he has to improve the flexibility of personal pensions in retirement. [40036]
§ Mr. HealdWe have introduced two measures in the Pensions Act 1995 which will improve the flexibility of personal pensions in retirement. The first measure will bring the age-related rebates for personal pension holders who have contracted out of the state earnings-related pension scheme, which will make such pensions attractive across a broader age range. The second measure permits more flexible use of personal pensions savings, by allowing personal pension holders to draw an income from their fund each year and defer buying an annuity until a time of their choosing up to age 75.