LONDON (Reuters) – Britain's finance ministry will introduce a secondary market in annuities from April 2017, it said on Tuesday, extending a shake-up in the pensions market which has curbed demand for these fixed-rate pensions products.
More than 5 million people will be able to sell their annuity following the removal of tax restrictions, the UK Treasury said in a statement.
Pensions freedoms introduced earlier this year mean retirees no longer need to use their pension pots to buy an annuity, which gives an income for life.
The new secondary market will enable those who already bought an annuity to sell it for an upfront cash sum.
Annuity sales fell by nearly half last year in the run-up to the pensions changes.
(Reporting by Carolyn Cohn; Editing by Rachel Armstrong)