The Pensioneer Trustee Company (Guernsey) Limited

  •  
  •  
  •  

PENSIONS REVOLUTION HITS THE UK

April 11, 2014

The UK Chancellor, George Osborne, stunned the pensions industry when he announced the biggest changes to UK approved pension schemes in almost a century In the UK Budget last month.

Channel Islands policymakers are now considering whether to follow suit and allow people to take their pension as a lump sum rather than annuity on retirement. Whatever happens, it seems likely that the UK changes will have an impact on our ability to purchase annuities and annuity rates. 

UK registered pension schemes are tax- advantaged vehicles that encourage people to save for their retirement. Under the current UK rules individuals reaching retirement age (which is any age from age 55) must take their retirement savings in the form of an annuity unless they qualify for what is known as ‘flexible drawdown’. Although an annuity provides a guaranteed income until death, with interest rates extremely low and rising longevity today’s annuities offer relatively meagre incomes.

Retirees forced to turn their pension savings into an annuity are often frustrated and
angry that after a lifetime of saving, their pension pots will not provide enough money to make for a comfortable retirement. The requirement to turn pension savings into an annuity has also served as a disincentive for would-be savers, with many preferring to save in other tax efficient manners (but which do not restrict the age at which access to such savings can be obtained). 


Read more

Contact us

The Pensioneer Trustee Company (Guernsey) Limited
Ground Floor, 10 Lefebvre Street
St Peter Port, Guernsey
Channel Islands GY1 2PE

T +44 (0) 1481 743760

Privacy Policy

Terms & Conditions

Website Designed by The In-Marketing Partnership

Receive our International Pension & Benefits newsletter

Regulatory Information

The Pensioneer Trustee Company (Guernsey) Limited is licensed by the Guernsey Financial Services Commission under The Regulation of Fiduciaries, Administration Businesses and Company Directors, etc. (Bailiwick of Guernsey) Law, 2000 and subject to The Pension Licensees (Conduct of Business) & Domestic and International Pension Scheme and Gratuity Scheme Rules (No.2) 2017.