Budget 2014 scrapped the ‘annuities deal’ for ‘defined contribution’ (DC) pension saving in the UK, removing an obligation to turn tax-advantaged pension savings into a secure pension income that stretches back to the Finance Act of 1921.
In order to inform subsequent policy development, this report assembles and reviews a range of relevant academic and other evidence on:
- The numeracy and financial capability of those around retirement age in the UK;
- The experience of countries with voluntary annuity markets;
- The extensive academic literature on the so-called ‘annuity puzzle’, i.e. the low prevalence of annuity purchases observable in countries with voluntary annuitisation frameworks.
Download a copy of the report: New Annuity Era – Understanding retirement choices and the annuity puzzle
This report has been made possible by the kind support of Aviva and Age UK.
Author: James Lloyd, Strategic Society Centre