Don't get bitten by an ASP!

26 January 2006 / Penny Bates

Issue: 4042 / Categories: Comment & Analysis

PENNY BATES examines the new alternatively secured pensions provisions.

THE GOVERNMENT U-TURN on the ability to include residential property and other more 'exotic' investment classes in pension funds from A-Day
(6 April 2006) came as a surprise and a disappointment to many people. However the keenly awaited changes to income in retirement will still be introduced. I would therefore like to examine the new provisions for alternatively secured pensions (ASP) and how they differ from the old style annuities.

Annuities

One of the major disincentives to pension saving cited by many people over the years has been the requirement to purchase an annuity by the age of 75. Another source of irritation is that on death all remaining funds are retained by the insurance company concerned meaning that it is not possible to pass funds on to successive generations.
On a more positive note there has been an increase in the range of options...

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