Secondary Annuities Market: Why Plans Were Abandoned
What Was the Secondary Annuities Market?
The secondary annuities market was a proposed system allowing individuals to sell their annuities for a lump sum. The idea was introduced as part of pension freedoms, aiming to provide retirees with greater financial flexibility.
The plan would have enabled people to cash in their annuities, giving them greater control over their retirement savings. However, concerns arose about market competition and consumer protection, leading to its cancellation.
Why Was the Secondary Annuities Market Abandoned?
The UK government scrapped the secondary annuities market due to fears that too few buyers would participate. Without enough competition, annuitants risked selling their policies for poor value, receiving far less than their annuities were worth.
Key concerns included:
- Lack of interested buyers – Insurers and pension providers showed little enthusiasm for purchasing second-hand annuities.
- Risk of poor deals – Retirees could have received significantly lower payouts than their annuity’s true value.
- Complex regulatory challenges – Ensuring fairness and transparency in pricing posed difficulties.
Given these issues, the government concluded that the secondary annuities market was not viable.
How We Can Help
At Lewis Brownlee, we can provide expert pension and retirement planning advice. If you’re unsure about alternative ways to manage your annuities, we can help. So, when you’re ready, do give us a call!
We offer a free introductory meeting, allowing you to discuss your options with our team. So, if you are curious about how we can help, this is your chance to find out before committing. Whether you need advice on pensions, annuities, or retirement income, our experts can guide you. As leaders in the field, we can easily clarify the complexities and ensure you are armed with all the knowledge you need to make the best decisions for you.
Help is at hand! Contact us today to book your free consultation.