UK - Towers Perrin is urging the pensions industry to back a hidden proposal in the Green Paper that could overhaul rules governing when and how retirement income can be taken.
The consultant said the Revenue has confirmed, although not well-highlighted in its consultation paper, there would no longer be a requirement to purchase an annuity at age 75.
Instead, the requirement will be for all funds to be used to provide income by that age.
It says proposals to scrap the requirement to purchase annuities at age 75 could benefit many scheme members as they reach retirement age.
The clause in question reads: “Once any lump sum is drawn, the remainder of matured pension savings must be used to provide pension income.
“[And] the rules about pension income will be more liberal than now.”
The only requirement is that this income must start “no later than” 75.
The Pensions and Lifetime Savings Association (PLSA) is in the process of convening an industry-wide group to take forward the work of the Institutional Disclosure Working Group (IDWG).
The Transfers and Re-registration Industry Group (TRIG) has given its support to an initiative which aims to complete occupational pension transfers within three weeks.
Scottish Widows has completed a bulk annuity deal for the Hitachi UK Limited Pension Scheme.