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Pension changes ABI asks for clarity following Budget announcement

The ABI has called for clarity following the pension changes announced in the Budget.

Huw Evans, Director of Policy, Association of British Insurers said:

"Pension and annuity providers were given no advance warning ahead of the Budget changes that came into effect within a 10 day period and have been working round the clock since to help customers understand their choices. The Government’s announcement introduced a cliff-edge for customers and it is wholly unacceptable that a week after the Budget HMRC has still not clarified the rules around whether tax free lump sums can be reversed for those customers who have just annuitised and wish to change their mind.

"The current HMRC rules state that this is an irreversible benefit – yet providers, customers and financial advisers need clarity urgently if they are to navigate the current situation.  Insurers remain committed to working with each other closely to help customers who wish to exercise their ‘cooling off’ rights but needs the Government to do its part to recognise the urgency of clarifying the post-Budget situation it has created.”

Last updated 01/07/2016