Written Answers — HM Treasury: Pensions: Lump Sum Payments (29 Jun 2016)

To ask Mr Chancellor of the Exchequer, whether he plans to change the pension freedoms rules to allow people to withdraw a lump sum after drawing down their pension.

 

Answer by Harriett Baldwin The Economic Secretary to the Treasury

The Chancellor announced at the March Budget 2015 that the government intends to remove the restrictions on the sale of existing annuities. This will allow pensioners to sell the income they receive from their annuity. Subject to agreement from their annuity provider and there being a willing buyer, people will then be able to access their money either as a lump sum or arrange for it to be put into a drawdown product to use the proceeds more gradually.

In December 2015, the government published its response to its initial consultation on these proposals confirming that the government intends to implement these proposals from April 2017.