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18-Mar-08 10:10 [Research]
Obligation to buy annuity 'not putting off young people' Young people are being put off saving into a pension for more reasons than just the obligation to buy an annuity when they want to access it, according to The Pensions Advisory Service (TPAS).
The organisation has claimed that this point is not important for people when looking at pensions despite some arguing that removing the obligation to buy annuity would result in more people saving for the future.
Des Hamilton, technical director of TPAS, said: "For the vast majority of people, young or old, the whole issue or whether or not they should have to buy an annuity is academic. They have to buy an annuity in reality as and when they retire."
He added that it is not just an issue when people are 75, it is "an issue whenever they retire, whatever age it might be".
The National Association of Pensions Funds has also called for caution over plans to scrap compulsory annuitisation, arguing that any move which makes pensions more complicated should be carefully considered.
The government's launch of a public consultation into service charges, gratuities, cover charges and tips will include proposals to make tipping fair, it has been revealed.
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People failing to save into their pensions will be reminded by the government to do their best to honour pension schemes, as cutting out payments altogether could spell trouble in later life.
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New York's attorney-general Andrew Cuomo has urged executives of top companies to forgo their bonuses for the year, it has been revealed.
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