LV= responds to Treasury consultation
by Richard Kilner
Story link: LV= responds to Treasury consultation
Following the official submission from LV= to the Treasury consultation on removing the requirement to annuitise by age 75, the firm’s retirement solutions director John Perks has expressed the firm’s support for a more joined up approach in government thinking.
Perks explains that LV= backs the aim of providing a brighter but affordable future, but calls for a wider review than is presently taking place.
Removing the compulsion to buy an annuity at 75 will remove an obstacle considered by many as a deterrent to acquiring a pension.
However, LV= is of the view that the measure will only work if there is a flexible alternative on offer to enable people to realise retirement income from a pension fund.
Perks adds that LV= supports the Government’s approach generally, but would prefer a simpler solution and believes this would promote savings and cut the risk of state dependency.
The eight-week Government consultation in annuity reform began in mid-July, with a view to bringing in a more flexible system.
The consultation came to an end on the 10th of September, with the reforms due to be published in the Autumn.