George Osbourne during his Budget speech mentioned that people from now on will be able to take all their pension in cash or put into other investments etc of their choosing. They will have to pay tax on the amount they take from their pension pot.

My question is can existing pensioners who entered into an annuity pension in the last five years as at that time annuity plans were about the best things on offer to be able to receive a monthly income, go back to their Pension providers and be able to cancel their annuity pensions and opt for the cash instead

Hello and welcome to CAG.

Watching the BBC budget coverage yesterday, their man didn't think this would be possible. There is still detail to be analysed, but I don't recall hearing anything that changed the rules for annuity contracts retrospectively. I would have thought that is what would be needed for refunds to be available.

My best, HB

This will depend entirely on the provider. You can bet some will allow you to cancel, but will calculate their charges and give you what is left which has the potential to leave you worse off.

There was no announcement that any legislation will be coming in to allow you to cancel other than within the normal cancellation period as set out in the agreement.

Be careful if you have access to any pensions pot, when the rules change. It will become accessible savings and may have implications in regard to court debt enforcement or benefit entitlements. Something to keep an eye on, when the legislation is passed.

You buy an annuity, which is effectively an insurance. You cannot cancel it as it is for life. You could not change it even 1 day after taking it out, let alone 6 years after the event.

Hello and welcome to CAG.

 

Watching the BBC budget coverage yesterday, their man didn't think this would be possible. There is still detail to be analysed, but I don't recall hearing anything that changed the rules for annuity contracts retrospectively. I would have thought that is what would be needed for refunds to be available.

 

My best, HB

Many thanks for your advice

supercorte

Radio 4's Money Box had an item on pensions this morning.

Steve Webb, the pensions minister, said that they can't undo existing annuity contracts, but that around 25,000 people who are in the 'cooling off period' should be able to cancel.

I'll try to find the i-player link.

HB

This is it, I hope.

http://www.bbc.co.uk/programmes/b006qjnv

HB