Budget 2014: Retirement of compulsory annuities

Budget 2014: Retirement of compulsory annuities

Budget change allows for flexibility on when customers can access pension savings.

Also on KPMG.com

In today’s budget, the Chancellor has significantly increased the flexibility for customers to choose how and when they access their pension savings during retirement.

Whilst the announcement represents an opportunity for the ‘self service’ financial providers and wealth managers, KPMG warns that the announced changes to defined contribution pensions schemes will shake up the business models of players in the pensions and annuity industries.

Commenting on the Chancellor’s announced changes, Phil Smart, UK head of insurance at KPMG, said, “This represents a massive shake-up for the pensions and annuity industries. It will require a fundamental shift in the strategies and business models of annuity providers – one of the few remaining areas of the UK life industry which has remained active in recent years. Annuity writers will now need to develop innovative and compelling solutions to meet the retirement and social care needs for consumers.”


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For further information please contact:

Simon Chan, KPMG Corporate Communications

T: 0207 694 2024

M: 07747 564 737

E: simon.chan2@kpmg.co.uk

KPMG Press office: +44 (0)207 694 8773

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Chancellor’s Budget 2014


About KPMG

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such. 

This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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