Royal London offering ‘substantial’ cash for annuity guarantees
By Tom Carnegie, 29 Nov 17
Death to the Pension Annuity, as visualised here with a coffin and a white rose, with a brass plaque and the engraved text, Annuites RIP text and an embedded pound coin. Annuities are a contract with an annuity provider to supply an income for the rest of your life in exchange for your personal or workplace, commonly known as a defined contribution pension. This type of pension has been dealt a death blow by the UK Government. From April 2015 pension savers have been told that they will no longer need to buy an annuity with their pension pot savings. Annuities have long been seen as a providing a very poor return in exchange for a pension pot, unless you live to an old age. They lock a pension holder in to the contract for the remainder of their life, be it 1 year or 40 years. The annuity ceases upon death. Pension holders will be free to now choose how they spend or invest their funds after the age of 55. A quarter of the fund may be taken tax free, as existing. RIP the Annuity,
