Are the Government right to do a Pension U-turn?

Print Friendly

The government has done a huge U-turn on Pensions and scrapped the rights of 5 million pensioners who had been promised they would be able to swap their annuity for a lump sum in former Chancellor George Osborn’s pension reforms.

The treasury has now said that this part of the reforms will be not be implemented and pensioners who already have annuities will have to keep them.

Ministers have said that the plans for the reform have been halted as pensioners could potentially be charged up to 20% fees for cashing in their annuities and that only a small proportion of pensioners would have cashed in their annuities anyway. In addition, the insurers who may have bought back the annuities are reluctant to do so with only 20% of the major companies agreeing to do so. Pensioners could also have faced thousands of pounds in fees for financial advice.

Ros Altmann a former pensions minister said:

“This is going to be really disappointing for all those people who have desperately wanted to get rid of annuities which they were forced to buy and which were often not sold properly to them in the first place.‘Now these savers will be stuck with these deals for life. The Government got their hopes up and many people will be very upset.”

What are your views? Have you been affected by this or has anyone you know? Should the government have done a U-turn? Are they simply trying to protect pensioners from unscrupulous financial advisers? Should the government have gone ahead with their promise to pensioners to reform pensions before they knew the likely outcome?

Are the Government right to do a Pension U-turn?

351 people have already voted, what's your opinion? Yes No

What are your views?

We'd love to hear your comments

Not a member?

Join the silversurfers community today! It's free, easy to do, and is packed full of features and amazing offers!

Join the community!
Click here if you have forgotten your password
12th Nov 2016
Thanks for voting!
unless they intend to increase our pension they should leave it

alone do they not that the taxpayer cannot afford their pension and
perks maybe they look into their own I have never seen them get
a £2 a week rise yet.
Dennis Boe
11th Nov 2016
Thanks for voting!
Absolutely not they urged us to save , now don't want us to have our own money utter disgraceful when will they serve the voters they have no right whatsoever, I too early retirement which meant I got 25% then a small sum I now have no right to have the remainder when I had stroke and become unable to work any longer I was devastated I got DLA now after two further assessments to take this off me and appeals against these experts I have to go through another because transfer of PIP unreal and actually discrimination .
I served my country also been shot at blown up and got nothing as part of my job as far as I was concerned yet they can train anyone without any medical experience to assess me again by a tick box computer questionnaire and express their opinion as to whether my manner was correct even yet its costs millions to train such for 1% that are cheats is and should be taken to courts of human rights, there are plenty worse off than myself they waste more public money than are saving .
23rd Oct 2016
Thanks for voting!
I think that we should have the choice whether to sell our existing Annuity or not. It seems to me that they think when you get old, you are not able to think for yourself, I find that very insulting its my body thats got health problems not my mind! Just to prove the point please find a small part/point that was brought up in the Parliamentary Debate 'The Sale of Annuities' dated 19th October 2016 chaired by The Economic Secretary to the Treasury, Simon Kirby.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)

Share this contribution
My constituent, Mr Anderson, contacted me and advised me that, despite the risks, he planned to take up the option of selling his annuity. I wrote to the Treasury and was assured only 19 days ago:

“The Government remains committed to delivering these proposals”.

Yesterday’s announcement is a betrayal of people such as Mr Anderson. I notice that the Minister did not answer the question a few minutes ago, so what exactly do the Government suggest that Mr Anderson and others do now?

Simon Kirby

Share this contribution
Obviously, Mr Anderson is as important as all the other people who, no doubt, will be very interested in this announcement. It transpired through consultation that a very small percentage of people would be better off. We were looking at legislation that would oblige the Government to provide guidance and advice; in the vast—very vast—majority of cases, that advice would be that it would not be appropriate and in the consumer’s best interests to proceed. There is no easy answer, but at the end of the day, I am not going to allow vulnerable older people to take advantage of what may, superficially, seem a good deal, but what, in the long term, is a poor one

Through the whole of the debate Mr Kirby relates to us, on numerous points as "Vulnerable Older people", I think of myself Older but certainly not vulnerable, my mind is very alert and my judgement is great, how dare he be so patronising about pensioners, shame on him!!!
22nd Oct 2016
Thanks for voting!
Yet another shafting by the Pension Service. Lets have a vote on how much MPs should gdt by way of a pension funded by the taxpayer. Add into thd mix at what age they are allowed to claim it. Lets also add how much they should be allowed by way of perks and expenses. Lets see them do a U turn on all that a vote for a pay cut. Greedy, selfish.
22nd Oct 2016
Thanks for voting!
How can it not be the Government's fault when some pensioners have already enjoyed this option ?
22nd Oct 2016
Thanks for voting!
This is a total outrage ,a cynical election ploy and the excuse is so flimsy . Pensioners and savers have had a lousy deal since 2008 ,we have subsidised the banking bailout and everybody's mortgage . The Conservative party are supposed to stand for thrift and self sufficiency and this is a huge betrayal .
21st Oct 2016
Thanks for voting!
This is nothing to do with the government. I understand that there were regulations forcing people to take out annuities and these have now gone but that is life. The government cannot fix everything and people need to take responsibility for their own pensions. There never was any chance of there being a market in annuities and Osborne should have checked on this before making the claim.
20th Oct 2016
Thanks for voting!
The former Chancellor's pension proposals seemed rather silly to me.

I'm sure many people, if they could take a lump sum out of their pension pot, would spend it on cars, cruises or similar things. Inevitably, any future income from that annuity would be reduced substantially leaving them worse off in the end.

Additionally, there would be the inevitable exit penalties disguised and charges for taking a lump sum thereby further reducing the amount of their savings.

Recioe for poverty I would think!
20th Oct 2016
Thanks for voting!
I was looking forward to cashing in my annunitys as I would like to enjoy my money now and not when I am unable to do,what right has the government to tell us how to use our pensions.
21st Oct 2016
Thanks for voting!
I totally agree with you. We are not children and its our money to take and spend as we want. the government is a nanny state. Churchill would be mortified!!!
20th Oct 2016
Thanks for voting!
People are lucky to have such big pension funds, I worked hard for years and got very little for it.
20th Oct 2016
Thanks for voting!
I didn't get a right lot either, but it's enough. We make it so.
19th Oct 2016
Thanks for voting!
I think this is outrageous how long did the government think about the new pensions rules-spend money promoting them, giving people hope and then not going through with it! They should be ashamed. They were giving pensioners who are already drawing on private pensions the same choice they are giving those just about to take the pensions. Let us make the decision on whether to keep our annuity or take a different route! We are being treated with total disrespect.

Community Terms & Conditions

Content standards

These content standards apply to any and all material which you contribute to our site (contributions), and to any interactive services associated with it.

You must comply with the spirit of the following standards as well as the letter. The standards apply to each part of any contribution as well as to its whole.

Contributions must:

be accurate (where they state facts); be genuinely held (where they state opinions); and comply with applicable law in the UK and in any country from which they are posted.

Contributions must not:

contain any material which is defamatory of any person; or contain any material which is obscene, offensive, hateful or inflammatory; or promote sexually explicit material; or promote violence; promote discrimination based on race, sex, religion, nationality, disability, sexual orientation or age; or infringe any copyright, database right or trade mark of any other person; or be likely to deceive any person; or be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence; or promote any illegal activity; or be threatening, abuse or invade another’s privacy, or cause annoyance, inconvenience or needless anxiety; or be likely to harass, upset, embarrass, alarm or annoy any other person; or be used to impersonate any person, or to misrepresent your identity or affiliation with any person; or give the impression that they emanate from us, if this is not the case; or advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.

Nurturing a safe environment

Our Silversurfers community is designed to foster friendships, based on trust, honesty, integrity and loyalty and is underpinned by these values.

We don't tolerate swearing, and reserve the right to remove any posts which we feel may offend others... let's keep it friendly!

More Speakers Corner

Real or Artificial - What kind of Christmas tree will you have? Fresh cut Christmas trees
Each Christmas there is a ‘debate’ over real versus artificial Christmas trees. The...
Do you agree with Cryogenic Preservation? Excess smoky nitrogen gas discharge during filling of a liquid nitrogen dewar.
This week it was announced that a very brave 14 year old girl who had terminal cancer had won...
Should shops remain closed on Boxing Day? Boxing Day Sale cinnamon star on green wood concept.
A petition calling for a ban on shops opening on Boxing Day has attracted close to 194,000...
Will you be sending Christmas cards this year? Bracknell, England - October 28th, 2014: Vintage style Christmas cards. Modern cards originated from a printing in 1843 instigated by Sir Henry Cole, director of London's Victoria and Albert Museum.
The custom of sending Christmas cards was started in the UK in 1843 by Sir Henry Cole. He was a...
Do you still use cheques as payment? Signing a blank cheque with a fountain pen
** Note: Shallow depth of field
Cheques books have been used in the UK for over 350 years but they are now on the decline. In...
Are you surprised that Donald Trump won? Saint Louis, MO, USA - March 11, 2016: Donald Trump addresses supporters at the Peabody Opera House in Downtown Saint Louis
After months of campaigning, debating, mud slinging and scandals, the Americans have voted and...
Do you mind the gap? toblerone
The makers of Toblerone, Mondelez, have taken the decision to widen the gaps between the...
Should Nigel Farage be ennobled in the House of Lords? LONDON, UK - MAY 1, 2016: Nigel Farage seen arriving at the BBC to attend the Andrew Marr show
There are calls for Nigel Farage to be made a Lord and take his place as a peer in the upper...
Should the FA defy the poppy ban? poppy
England are due to host Scotland at a World Cup qualifying match at Wembley on November 11 ...
Who would you trust more to be the next US President? LONDON UK - MARCH 3RD 2016: Hillary Clinton and Donald Trump pin badges over the American flag symbolizing their battle to become the next President of the United States 3rd March 2016.
With the latest results today from ABC/Washington Post tracking poll, now showing Donald Trump...
Should the UK have a complete ban on selling Ivory products? ivoryburn2 900x600
Hugh Fearnley-Whittingstall, chef come wildlife campaigner, has been looking into the shocking...
Do you think Princess Beatrice and Eugenie should be given royal duties? London UK - June 17 2006: Princess Eugenie (left) and Princess Beatrice seating on the Royal Coach at Trooping the colour ceremony also known as the Queen's Birthday Parade
** Note: Slight blurriness, best at smaller sizes
It was revealed in the sunday papers that there is a nasty feud brewing between Prince Charles and...
Do you rake or vacuum? Yorkshire Dog on the autumn leaves blur
Autumn is in full swing, and the leaves are rapidly changing from luscious shades of green, to a...
Where do you think the extra runway should be built - Heathrow or Gatwick? Airplane touch down on runway during sunset
Since the 1970s various UK governments have been debating how to expand the UKs potential to...
Do city zoos still have a place in a modern society? gorilla in zoo
Last week’s incident at London Zoo, in which a male silverback gorilla escaped his enclosure...
Are hospital trusts cashing in on the sick? Ticket machine at the exit of a car park
Patients in England are being penalised with increasing parking charges with 30% of hospital...
Is BA trying to pull the wool over our eyes? BARCELONA SPAIN - DECEMBER 11: A British Airways Airbus A320 taking off on December 11 2014 in Barcelona. British Airways is the international airline of Great Britain with its headquarters in London.
Last week British Airways proudly announced that they will be partnering with Marks & Spencer...
Are we being ripped off? TERRY'S CHOCLATE ORANGE
It seems to happen every year now, that chocolate manufacturers start messing with our favourite...