Whitehall sources have allegedly indicated that the coalition’s most senior figures will on Friday discuss proposals to allow guaranteed income to be exchanged for a cash lump sum.
A consultation by the UK’s Financial Conduct Authority would be expected to decide how to regulate the resale of annuity income.
Liberal Democrat pension minister, Steve Webb, has previously championed the idea, to much controversy. Last week, he said the government was looking at further ways to expand the pension reforms announced in last year’s Budget by chancellor George Osborne.
“I believe we need to look at whether there is scope for a secondary market to be developed where the contract remains in place but the stream of income might be redirected in return for a cash sum,” he said.
The UK pension reforms announced last year will be introduced on 6 April and remove the requirement for an annuity by allowing unrestricted lump sum withdrawals from a pension pot.
