OREANDA-NEWS. Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE:AON), has welcomed the announcement that the Government will make financial advice mandatory for those pensioners willing to sell a “higher value” annuity in the secondary market.

The Government has confirmed plans to make an amendment through the Bank of England and Financial Services Bill in order to make advice mandatory for those looking to trade an annuity. The announcement follows a consultation on the creation of a secondary annuity market launched by the Treasury in March 2015.

Ben Roe, partner at Aon Hewitt, said:
"The mandatory advice requirement feels like a natural extension of the pension freedoms. There is a need to ensure that people make informed decisions around selling their annuities for cash. But the Government needs to be aware of the difficulty of providing the right advice for each individual. Otherwise there is a real risk that the market will not develop and that all the effort involved in getting this new initiative off the ground could be wasted.”

Ben Roe continued:
“We now hope that defined benefit (DB) pensioners will be next in line and that the Government will give these individuals the opportunity to cash out or convert their future pension increases. Pensioners would always retain their current level of pension and this secure income base should make the need for advice much less compelling.”

About Aon
Aon plc (NYSE:AON) is a leading global provider of risk management, insurance brokerage and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 69,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative risk and people solutions.