09 October 2008
The Conservative Party has called for emergency pension
protection in the light of the current troubles in the financial
markets.
The move would see the rules - which force some people to lock
themselves in to long term pension arrangements either on their
retirement date or their 75th birthday - suspended until the
current turmoil has receded.
The Conservatives warned that, at a time when the markets are
low, those who are at the point where they have to purchase an
annuity with their pension fund could end up "significantly worse
off" in their retirement than they would otherwise.
Conservative work and pensions spokesman Chris Grayling said:
"It makes no sense to penalise someone whose birthday happens to
fall within the current period of extreme turbulence.
"We want to see an immediate change to the rules so that people
don't have to make long term commitments before the things have
begun to settle down."
Grayling has written to work and pensions secretary James
Purnell offering immediate support to work with the government to
temporarily change the rules on annuities so that people are not
worse off in their retirement due to the current financial
problems.
