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PRESS RELEASE 6 January 2014
BROADSTONE warns of Steve Webb’s proposals for ‘switchable annuities’ Simon Nichol, Pensions Director of Broadstone Pensions and Investments, comments on the recent annuity proposal from Steve Webb: 'Steve Webb's proposals for 'switchable annuities' could end up being counterproductive. Annuity rates are set partly in the knowledge that some members will die early subsidising other members of the annuity pool. If those who suffer later poor health can pull out of the pool and transfer to a better annuity rate, those left behind must inevitably suffer worse rates. 'There are many things wrong with the annuity market but there is plenty of low hanging fruit yet to be picked, such as ensuring all annuity purchasers get the best possible rate through the open market option. Mr Webb seems determined to shake the whole tree and is in danger of bringing it down.' Ends For press information contact: Oliver Parry, Redleaf Polhill
020 7382 4762 /
[email protected] Jenette Greenwood, Redleaf Polhill
020 7382 4761 /
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Broadstone Pensions & Investments Ltd is authorised and regulated by the Financial Services Authority. Registered in England and Wales under No. 02096406. Registered office 55 Baker Street, London W1U 7EU.