The decision of the new coalition government to scrap compulsory annuitisation at 75 years has been welcomed by one industry body.
This move, along with the use of equity release plans, could lead to a more flexible retirement financing regime for homeowners in the UK.
Sun Life of Canada said the decision will finally see an end to the "archaic piece of legislation" operated by the previous administration.
Mark Stopard, the firm’s head of marketing, said: "It is outdated and offers no value to those approaching retirement currently, let alone the generations who will follow them.
"Retirement has fundamentally changed and is now a phased process; the ‘at work one day and not the next’ progression has disappeared forever. People need flexibility and innovative ways of saving for their retirement and to have the products that give them the ability to vary how they take their income."
Equity release schemes can provide homeowners with a lump cash sum or a regular income with cash taken from the value of their property assets.
Posted by Claire Ford
