By Claire West

Commenting on the IoD response to the Treasury consultation paper, Removing the requirement to annuitise by age 75, Malcolm Small, Senior Adviser on Pensions Policy at the IoD said:

“The direction of travel is welcome — annuities are one of the least popular features of pension saving — but in reality, very few people will be able to make use of these proposals as they stand because of the requirement to secure a minimum income with their pension fund.

This in turn is driven by the need to keep people off means tested retirement benefits such as Pension Credit. We believe that until we reform the state retirement benefit system to do away with means testing, and provide a decent, universal basic state pension, anything else will be tinkering at the edges.”

He added:

“We know that there are people in the coalition government who would like to do this, and we think it is affordable now. Reform of the state pension system is urgently needed.”