Five years ago the pensions world was rocked by George Osborne’s Budget announcement: DC members would no longer be forced to buy annuities.
Under his “freedom and choice” initiative, tax rules were changed so that DC pots could be used to provide lump sums or drawdown. At the same time, Pension Wise was introduced – free guidance for DC members about their benefit options. Later changes to tax law mean that, subject to certain conditions, members can use their DC savings to pay for financial advice.