The Government has again been defeated on key issues regarding amendments to the Pensions Bill, following the House of Lords' backing to scrap the rule forcing pensioners to buy an annuity at age 75.

Currently, law requires private pension savers to use three-quarters of their pension savings to buy an annuity but an amendment would put an end to this. Conservative peer, Lord Higgins said the rule was "unfair", citing the drop in annuity returns which reflect interest rates.

The government is likely to stand firm, however. Junior work and pensions minister Baroness Hollis argued pension savings already attracted large tax breaks, with the amendment only benefiting the wealthy.

She said: "The bulk of the argument that the annuity pot is so attractive to people that they wish to gain access to it is precisely because it enjoys the tax privileges, the tax shelter and tax haven, that has been given by the taxpayer."

The Retirement Income Reform Campaign (RIRC) welcomed the amendments with director and former MP Oonagh McDonald, saying: "This is the news millions of people saving for their retirement have been waiting for. The outdated compulsory annuity purchase rule is close to being scrapped. After years of campaigning, this is perhaps the most important victory for the Retirement Income Reform Campaign and our many supporters." She added that she hoped ministers would not block the move on the Bill's return to the Commons.

Citizens Pension Proposals

Two of the industry's most influential bodies, the National Association of Pension Funds (NAPF) and the Pensions Policy Institute (PPI), have called for a citiz...

Compulsory Pensions A Possibility

The Government's Employer Task Force, set up last year to look at how to alleviate the pensions crisis, said the Government could be forced to look at drastic s...

Pension Hardship Payments

Employees who have lost their pensions following the wind-up of their company schemes may receive hardship payments from the Government as early as March after ...

Carry Back Reminder

As the new year beckons, so does a pension deadline that should not be ignored - pensions' carry back. With only 5 weeks until the end of January deadline, indi...

Final Salary Pension Contributions On The Rise

Employers boosted their defined benefit (final salary) pension schemes with an extra 4.5 billion in contributions in the first nine months of 2004 - a 31% incre...