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Retirees are given greater say over their pension pot
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PostPosted: Thu Dec 09, 2010 10:35 am 
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Joined: Tue Mar 10, 2009 1:21 pm
Posts: 1457
Location: Hampshire
The Treasury will end rules forcing pensioners to buy an annuity at age 75 and let people cash in their pension pot and use the money however they see fit. This is as long as someone can demonstrate they have a separate source of income – expected to be set at a minimum of £15,000 – they could be allowed to cash in their entire pension pot.

The current system can force retired people to invest in an annuity even when the market conditions mean they could generate better income from other sources. Savers have been limited to taking a maximum lump sum of 25 per cent of their pension pot on retirement and must use the rest to provide an income.

By avoiding an annuity, savers will also be able to keep their pension pot for longer and increase their chance of passing money on to the next generation after death.


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