If you are retired you obviously managed to avoid a career like the one described by Tennessee Ernie Ford when he composed these lyrics. Hopefully you also had pension arrangements in place which have provided you with an income which has allowed you to maintain the standard of living you had envisaged.
If you saved while you worked, you may have used the lump sum you accumulated to buy an annuity which gives you a regular income. If you are dissatisfied with your annuity, you may be interested in changes to the rules relating to what you can do with your annuity recently introduced by HM Government. When you took out your annuity, it was for life (or a fixed term agreed at the outset). From 6 April 2017 you will be able to sell your annuity for a cash sum or for reinvestment in a drawdown scheme.
Announcing the changes, which it is estimated could affect over five million people the government set out a framework for the new arrangements.
iii) Annuity providers will be allowed the choice to buy back an annuity, subject to robust safeguards
Individuals will be required to seek independent financial advice for annuities worth above a certain threshold
Who is most likely to take advantage of the changes? Most obviously, it will be people who are dissatisfied with the annuity they have purchased who probably feel they could do better by investing their money elsewhere. However if the income from the annuity is uncompetitive then the cash anyone might be prepared to pay for it is unlikely to be attractive. It’s a bit like selling a car you bought new which depreciates before it has left the showroom.
In due course, you will be able to get more information on selling an annuity from Pension Advisory Service. Meanwhile you can contact them for help with
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