Current annuity age compulsion a major retirement challenge
Proposals to raise the age for compulsory annuitisation from 75 to 80 is to be one of the topics for discussion at the forthcoming TISA (Tax Incentivised Savings Association) Retirement Challenge conference on 26 November.
TISA has already made its position clear arguing in its Pre-Budget Report submission that increasing life expectancy and people working later before retirement means that 80 is a far more representative age.
Annuities will be just one of a wide range of retirement issues debated at the conference by pensions gurus Dr Ros Altmann and Ned Cazalet with Shadow Pensions Minister Nigel Waterson MP providing a perspective from Westminster.
Tony Vine-Lott, TISA Director General says:
“Current market conditions have put the spotlight on the pensions of those approaching retirement or who are nearing 75 and have yet to buy an annuity. I believe that raising the compulsory age to 80 is a practical move and straightforward to implement. It will provide real benefits to these people enabling them greater flexibility to make the right pension decisions. It is therefore particularly disappointing that there was insufficient support yesterday in the House of Lords for this proposed amendment to the Pensions Bill. TISA will continue to argue for its implementation.
Looking further ahead I would also like to see a more fundamental review of the annuity rules in the light of new product developments such as ‘new wave’ guaranteed income drawdown and variable annuities. This is a crucial subject for all of us in the UK and the future success of the UK pension scheme and I expect a lively debate at our conference.”
Also speaking at the conference are Adrian Boulding of L&G and Rachel Vahey of AEGON.
Designed for all those involved in retirement savings strategy, policy, decision making, marketing, distribution, compliance and pensions operations the event will be held on Wednesday 26 November at HQS Wellington in London, commencing at 12.00 and concluding at 16.35.
Further information and booking details are available from Angela Stubbs, telephone 01642 666999, email angela.stubbs@tisa.uk.com or from the TISA website www.tisa.uk.com
For further information, please contact:
Tony Vine-Lott, Director General, TISA – Tel: 01372 374728, Mobile: 07790 006108Email: tony.vine-lott@tisa.uk.com
Anne McMeehan, Cauldron Consulting – Tel: 020 3178 7237, Email: anne.mcmeehan@cauldron-consulting.com
Notes for editors:
The Tax Incentivised Savings Association (TISA)
TISA is the premier trade association in the UK retail savings and investment industry. By engaging with member firms, government, political parties, regulators and consumer groups TISA’s ultimate goal is always to further consumers’ best interests. It seeks to improve the range, features and quality of savings and investment schemes available whilst at the same time encouraging more people to save for their long term financial security and peace of mind.
Uniquely, TISA is able to articulate the opinions of the whole savings and investments marketplace through its membership which comprises over 120 member firms involved in the supply or distribution of products to the sector and its consumer interest. TISA’s remit extends across the broad spectrum of government sponsored savings and investment vehicles including:
• Individual Savings Accounts (ISAs)
• Child Trust Funds (CTFs)
• Saving Gateway
• Personal Pensions and Personal Accounts
• Investment Bonds
• Employer based pension schemes
• Wraps and platforms
• Other consumer-centric savings schemes and initiatives.
HM Government uses TISA’s market knowledge and ability to represent the views of both the savings and investments industry and consumers to help it to deliver its policy in this area. Recent TISA successes include improvements to the ISA, the regime in which ISAs operate and simplification of the CTF.TISA’s website: www.tisa.uk.com