Pensions Debate

Full Debate: Read Full Debate
Department: HM Treasury

Pensions

Earl Cathcart Excerpts
Thursday 21st October 2010

(14 years, 2 months ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Earl Cathcart Portrait Earl Cathcart
- Hansard - -

My Lords, I ask this question with a certain amount of self-interest. Is it the Government’s intention to remove the requirement to buy an annuity when a person gets to a certain age? If it was made optional for the owner of the pension pot, they could receive the annual income from that pension, albeit probably smaller than the annuity, and then the capital sum would fall into the estate on death.

Lord Sassoon Portrait Lord Sassoon
- Hansard - - - Excerpts

My Lords, I am happy to confirm to my noble friend that the Government have announced that compulsory annuitisation at age 75 will end. As an interim measure, we have raised the limit from 75 to 77 years to make sure that people are not trapped in compulsory annuitisation while we consult—as we have been doing—on a new system that gives people greater choice as to how they save for their retirement.