Martin & Nick go head-to-head on forced annuitisation
Informed Choice directors Martin Bamford and Nick Bamford have appeared in Retirement Strategy magazine (February 2010) in the head-to-head feature, which this month asked do you agree with the Conservatives’ proposal to scrap forced annuitisation at age 75?
Martin (pictured, right) explained that forced annuitisation is only of interest to a small number of people, in the same way that alternatively secured pension (ASP) is only really of interest for a small number of people.
He goes on to say that there is a lack of joined up thinking when it comes to pension policy, with so many different (conflicting) messages from the current Government. On one hand they want people to work longer and save more. On the other hand, they are currently forcing retirement at age 65 and attacking tax relief on pension contributions.
Nick (pictured, left) begins his argument by explaining that the vast majority of people it makes real sense to by an annuity before they reach their 75th birthday. The security of knowing they are going to get a guaranteed stream of gross income, combined with the fact that attitudes towards investment risk tend to become more cautious as you get older, makes annuity purchase more attractive.
You can read the feature in full here.