Tories weigh in on retirement finances

Conservatives have indicated that they plan to relax the age 75 annuity rule if they win the next general election.

Speaking to the Tax Incentivised Savings Association, Theresa May indicated that laws would be changed in order to give pensioners greater choice.

Currently, Britons are obliged to take out an annuity product, which converts pension savings into an annual retirement income, by the age of 75.

Ms May also highlighted the role financial advisers can play in retirement planning.

"Good financial advice will be crucial to ensuring that as many people as possible are saving enough and are getting the information they need to make the right decisions for their future," she commented.

"So we need to extend the availability of good quality financial advice."

An annuity-based pension income is just one of the options elderly people can use to boost their finances.

Equity release plans, through which a homeowner can unlock value stored in their property, can also generate a regular income.

Posted by Tom Papworth