UK - PricewaterhouseCoopers has warned the government Inland Revenue plans to introduce flexible annuities will be "irrelevant" to ordinary savers.
The consultant said it was concerned about the growing complexity of annuity design rules which was something that would “only interest the wealthy”.
PwC partner John Shuttleworth explained that flexible annuities meant that ordinary people would face a “bewildering array” of options that would be more expensive than the annuities currently available in the market.
He said: “Flexibility is of interest to the richest savers, but for the vast majority of savers this is irrelevant.
“We understand the reasons for the government allowing much greater flexibility, but we would suggest it considers the practical consequences for a straightforward case of an individual with modest savings.”
The firm added that if the government proceeded with the Inland Revenue reforms, then it should extend income-drawdown – currently only available to DC members – to DB schemes in the interests of having a “level playing field”.
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