A rule that requires all pension savers to purchase an annuity by age 75 will cease next year, the government announced on 22 June. Initially at least, the age will be revised up to 77, with a consultation process on whether the rule should be removed altogether.
6 April 2006 – the day that the pension simplification rules came into effect changing the way we can save for retirement.
If you are looking for a secure income that will not fall in value or eventually run out, an option to consider is a Purchased Life Annuity (PLA). A PLA pays you income in the same way as a pension annuity. However, it is bought using your own money rather than with money in a pension. The insurance company you choose to buy the PLA from will pay you a secure income for the rest of your lifetime in exchange for your capital.