Pensioners will be able to sell annuity policies, says minister Steve Webb

The pensions market could be set for further radical reform after a minister signalled he could allow retirees to sell their policies for cash.

Pensions minister Steve Webb said in an interview that he wants to allow current pensioners to be able to sell their annuity policies, giving them an immediate lump sum rather than a guaranteed income.

The changes would bring current policies in line with already announced changes for future retirees. The Government announced in last year’s Budget that in future people will be able to opt for cash over income when they retire.

Separately, MPs are set to debate legislation that would make pension funds more accountable to savers. Lord German, a Liberal Democrat, has proposed amendments to the Pension Schemes Bill that would force asset managers to reveal the fees they charge pension funds, which are currently hidden by non-disclosure agreements.

The amendments would also allow savers the right to ask pension funds how they vote on issues like executive pay in the companies the funds invest in and ask how fund managers are selected.