Magazine article The Spectator

Banned Wagon

Magazine article The Spectator

Banned Wagon

Article excerpt

MOST bad laws make some kind of perverse sense in that they help to enrich the government's coffers or to satisfy some puritanical ideology. A few do not appear to make any sense, however hard you look at them. One of them is the compulsion on holders of pension funds to convert those funds into annuities by the age of 75. Your accumulated pension fund, in effect, must be swapped for a life-insurance policy in reverse: an insurance company agrees to pay you a fixed sum each year until you die, whereupon it pockets your lump sum.

If you reach the age of 75 in good health and have reason to expect to live a long time, the deal makes sense. If, on the other hand, like many 75-year-olds you have health problems and are keen to leave some money to help your family, the compulsion to turn your life savings into an annuity is little more than government-sponsored mugging. Die the day after your 75th birthday and those life savings will be gobbled up in their entirety by an insurance company. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.