Written question asked by Lord Taylor of Warwick (Non-affiliated), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Monday, 20 December 2010.

Pensions

Question: To ask Her Majesty’s Government what plans they have to give savers with defined contribution or money purchase pensions more freedom to choose how they spend their money.

Answer: The Government are committed to a fair and sustainable pensions system which encourages pension saving and allows individuals appropriate flexibility to plan for their retirement. The Government are therefore removing the outdated requirement to purchase an annuity by age 75, with effect from April 2011. A consultation on implementing this measure was held over the summer, and the Government published their response on 9 December, alongside draft legislation. The Government have also stated that they want to explore the scope for allowing individuals to access part of their pension fund early, and published a call for evidence on this issue on 13 December.

Secondary information