Chris Grayling has called for emergency pension protection in the light of the current troubles in the financial markets.
The Shadow Secretary of State for Work and Pensions has demanded the immediate suspension of the rule that forces people to lock themselves in to long-term pension arrangements either on their retirement date or their 75th birthday.
At present, people who reach 75 are obliged to take out an annuity, as are people with a money purchase pension scheme who elect to receive a tax free lump sum.
But with the current difficulties in the financial markets, those who are at the point where they have to purchase an annuity could end up significantly worse off in their retirement than they would otherwise.
Chris stressed, “It makes no sense to penalise someone whose birthday happens to fall within the current period of extreme turbulence.”
And in a letter to James Purnell, Labour’s Work and Pensions Secretary, he offered to work with the Government to ensure people are not forced to make “once in a lifetime” decisions in a time of great financial uncertainty.