Retired workers would be allowed to switch to better-paying pensions under government plans to tackle “murky” practices among insurance firms.
Steve Webb, the pensions minister, wants pensioners to be able to switch to better annuities regularly in the same way that home owners can change their mortgage deals every few years.
The proposal would end the current “lottery” in which many pensioners are trapped in potentially poor-value schemes until they die.
So, someone retires at 65. Buys an annuity. They survive to 75. So now they can take their capital sum out of one fund and place it in another? What?
Doesn’t this “minister” understand the insurance nature of annuities? The pool?