Plans for secondary annuities market shelved

The government has decided to abandon its proposed secondary annuities market because the consumer protections required could undermine its development.

Many firms would allow customers to sell their annuities but the government believes there will be too few purchasers to make the market competitive. Futher the steps required to create purchasing demand would weaken other consumer protections.

Simon Kirby Economic Secretary to the Treasury said: ‘Allowing consumers to sell on their annuity income was always dependent on balancing the creation of an effective market with making sure consumers are properly protected. It has become clear that we cannot guarantee consumers will get good value for money in a market that is likely to be small and limited.’

He concluded that for most people keeping their annuity incomes will be their best option.

Tom McPhail head of retirement policy at Hargreaves Lansdown said:...