Consultations on the so-called “second hand annuities market” are about to start, and Pensions Minister Ros Altmann is already sound out a warning on the potential dangers

The changes are due to come into effect next April. Speaking on Radio 4’s Moneybox, Ros Altmann acknowledged that while those who missed out on pensions freedom may now be able to benefit from the changes, selling an annuity on the second hand market might mean getting less than their full value.

“It’s a bit like driving a brand new car,” she said. “As soon as you sell a new car, you get a big hit. It’s a bit like that, I would imagine, for people who sell their annuity; they will take a hit when they sell it,” she said.

With those attendant risks, she said, it will be vital for people to get the right guidance when the opportunity arises to sell.

Hopefully, there will be better Government information available to the public than was the case when the first round of pensions freedom came into play, since when many thousands of people have been scammed…

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