Secondary Annuity Market – Pipedream Or Reality?

Stuck with an annuity or deferred annuity? Don't worry, help is close at hand. From April 2017, you can sell your right to income for a capital amount! This is the simple plot. However, this depends on the Government passing a lot of new legislation between now and April 2017 and insurers entering the market.

The unfreezing of annuities is the bedfellow of the pension flexibilities introduced by Government in April 2015. In our view, the political will to free up the annuity market and push through the necessary regulatory and tax changes is great. You should expect to see everything in place by April 2017.

There is likely to be appetite from annuitants and insurers, but whether the market will develop depends on the Government getting the balance right between protecting the individual annuitant and providing a workable market for insurers.