Pension savers may get more freedom

Ministers will announce changes to the pension system, which will provide more choice for savers.

From April 2011, savers will no longer be obliged to purchase an annuity with money saved in a pension, but will be entitled to us more flexible options such as continued investment, or income draw down.

George Bull of accountants Baker Tilly stated that “Those with large pension funds and other sources of income... are likely to benefit most from enhanced flexibility”.

Annuity expert, Bill Burrows stated “ The new rules will mean that you won’t need to buy an annuity form a life insurance company, you can drain your pension savings directly instead.”

Source: http://www.bbc.co.uk/news/business-11949166