Annuity rule consultation launched by coalition ministers

Measures to bring about an end to the country's compulsory annuity age rule will be looked at in a new government consultation.

The process, which will last for a period of eight weeks, is aiming to create a less complicated system.

More flexibility needs to be offered to those in retirement, Mark Hoban, Financial Secretary to the Treasury, has suggested.

He commented: "This consultation puts forward reforms that will replace outdated and overly complex pensions tax rules with a new system that gives individuals greater freedom and choice."

The MP went on to say that the coalition government would like to see the development of a society more focused on saving.

Chancellor George Osborne's emergency Budget last month confirmed the dismantlement of the age 75 annuity rule.

The government is also aiming to offer more support to pension holders by encouraging the creation of an energy rebate for roughly 250,000 older consumers.

Posted by Liam Tomlinson.