Millions of retired workers would be given the power sell their pensions, under major being drawn up by ministers. Up to five million pensioners would stand to benefit from the proposals, if they would rather have money in their bank accounts than a guaranteed income every year.
Reforms announced in last year’s Budget will mean working people who retire in future will be able to cash-in their pension savings for a lump sum which they will be free to spend as they wish. But an estimated five million pensioners who have already retired will miss out because they are locked into their contracts until they die.
Steve Webb, the Pensions Minister, told The Telegraph he wanted to change the law to enable these pensioners to sell their annual lifetime incomes – known as “annuities” – to the highest bidder at any time after they have retired.
Pensioners may decide they would rather have cash than a guaranteed income stream to give money to children, to pay for home renovations or to invest.
