(2) with reference to the answer by the Leader of the House. 15 October 2008, Official Report, column 791, on pensions, what the outcome has been of discussions between his Department and the Department for Work and Pensions on the requirement on pensioners to annuitise pensions at the age of 75 years.
There is no requirement to annuitise at any age. Rather there is a requirement that an income be taken from pension savings by age 75.
The Government have considered this requirement to secure an income from a pension fund at age 75 in light of recent conditions in financial markets but has no plans to change it. 95 per cent. of people take an income from their pension savings by the age of 70.
The current rules already allow a considerable degree of flexibility. A pension income can currently commence at any time between the ages of 50 and 75, and can be taken from a pension fund without annuitising, through income drawdown. Even at 75, it is not compulsory to annuitise; alternatively secured pensions are available for those for whom they are suitable and who do not wish to buy an annuity.