§ Sir Sydney ChapmanTo ask the Chancellor of the Exchequer what plans he has to change the rules relating to the purchase of annuities. [177329]
§ Ruth KellyThe Government intend to retain the requirement for pension schemes to secure their retirement benefits once a member reaches age 75.
But, as part of the simplification of the pension tax rules, the Government are proposing to make the annuity rules more flexible allowing new innovative products to be developed such as limited period annuities and value protected annuities.
Also, for those people who object to annuities due to their religious beliefs, the Government are proposing to introduce an alternative way of providing an income for life—an Alternatively Secured Pension (ASP).