§ Mr. Frank FieldTo ask the Secretary of State for Work and Pensions what proportion of annuitants had annuitised over £100,000 of pensions savings in each of the last five years; and if he will estimate what the effect on annuity rates would be were the excess over £100,000 not annuitised. [82063]
§ Mr. McCartneyEstimates taken from data collected by the Association of British Insurers show that around 3 per cent. of pension funds used to purchase annuities in 2001 were £100,000 or larger.
Figures for earlier years are not available.
No assessment has been made of what the effect on annuity rates would be if people were not required to annuitised that proportion of their pension fund in excess of £100,000. The Government believes that, once any tax-free lump sum has been taken, the remaining funds built up in a pension fund should be used to provide an income in retirement