Until recently, people with Defined Contribution (DC) pension savings were effectively required by Government regulations to purchase an annuity with their pension fund by the time they reached age 75. Since April 2011 the Government has lifted the effective requirement to annuitise.

This Briefing Note summaries the main findings of a PPI research report (Retirement income and assets: the implications of ending the effective requirements to annuitise by 75), which estimates the number of people who might be able to take advantage of the new flexible options for accessing private DC pension savings and explores the possible impact of this policy change on low, median and high earners.

It finds that for people with large savings and a high appetite for risk, the changes will be very welcome and could be beneficial to their retirement income. However, individuals deciding to use Capped and Flexible Drawdown may be exposed to more risks to their retirement income 


To download Briefing Note 61, please click here.

To download the report, please click here.