Matthew Bird, an independent financial planner at Seer Green Financial Planning, said: “Following on from the changes already made by the Government last year in the form of the Pension Freedom Act, there have been indications that they are planning a secondary market for annuities.

“Previously, once someone bought one, it was a final decision, as it were, and there was no going back on it. Many people bought annuities last year before this initial change was introduced and now we expect an announcement on secondary annuity market, for people hoping to sell their annuity or take their pension in cash, as they please.

“I do welcome this, but unfortunately it is inevitably going to mean further changes for these people and it is unfortunate that they were unable to do what they wanted to from the offset.

“They will have already paid a charge to set up their annuity and will likely have to pay another to cancel it. But it is a benefit that the flexibility will be offered.

“Currently, if you go over the lifetime allowance limit on pensions, very punitive tax charges apply. It is rumoured that the lifetime allowance is being lowered from £1.25m to £1m. The figures sound high but a generous final salary scheme can easily be valued at these levels.

“I would like to see lifetime allowance being scrapped, as they can provide difficulties when trying to plan. I very much doubt that this will happen though.”

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