Just Retirement allays annuity fears

Equity release expert Just Retirement is reassuring people that should the Conservative government follow through on its opposition to compulsory annuitisation at 75, it would only affect a very small number of retirees.

The company points out that getting rid of compulsory annuitisation would only affect 2% of retirees and that 75-year-olds have a wide range of options available to them.

David Cooper, marketing and distribution director at Just Retirement, commented: “Given the Conservatives’ opposition to so-called compulsory annuitisation at 75, it is likely to be abolished by the new government. However, the “compulsion” was illusory and is only likely to affect 2% of retirees.”

He added: “We at Just Retirement welcome any government focus on retirement income provision, especially on the provision of long term care, greater clarity on means testing and wider public education about the options facing everyone as they plan for their retirement.”

Current rules simply require that pensions start paying an income from the age of 75. On retirement, many individuals use their pension fund to purchase an annuity, to provide them with a regular income. According to the equity release provider, the vast majority of retirees purchase an annuity well before the age of 75, usually timing it to begin with the start of their state pension.