Does it make sense to sell your annuity?

The government has given the go-ahead for a second-hand annuities market. So, should you sell yours? Sarah Moore investigates.

George Osborne's changes to the pensions regime have made pensions far more flexible, something we've welcomed at MoneyWeek. However, one group has been left out those who have already bought an annuity. That's set to change the government has officially given the go-ahead for a second-hand annuities market.

From April 2017, annuity holders will be able (if they so wish) to sell their annuities for a lump sum, taxed only at their marginal tax rate (rather than existing penal rates). The new owner of the annuity will then receive payments from the annuity provider, until the original annuitant dies. There is even talk of a "tertiary" annuities market (where annuities could be parcelled up and sold on) being in the pipeline.

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Sarah is MoneyWeek's investment editor. She graduated from the University of Southampton with a BA in English and History, before going on to complete a graduate diploma in law at the College of Law in Guildford. She joined MoneyWeek in 2014 and writes on funds, personal finance, pensions and property.