Sale of Annuities

Part of the debate – in the House of Commons at 12:46 pm on 19 October 2016.

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Photo of Simon Kirby Simon Kirby The Economic Secretary to the Treasury 12:46, 19 October 2016

What happens in the secondary annuities market is very different from cashing in existing pensions for lump sums. To be clear to the House, selling an annuity would never have been the same as getting a refund on all the money that was put into the product or the original pension pot minus any payments made. Purchasers would have paid what they thought the income stream was worth. Without a competitive market, that income stream would have represented poor value for money, and they would have got a very poor settlement as a result.