There should only be an obligation to purchase an annuity from a DC pension plan if individuals are not able to fund the MRI from other sources. 2 Residual Fund Having met the MRI individuals would be free to use any Residual Fund in their pension plan. Remaining assets would be then allowed to grow on a tax privileged basis, until withdrawn when they would be subject to the individual's highest marginal rate of income tax. Once MRI is accepted then more innovative ways of providing for further income in retirement from pension plans can be found - not simply based upon annuities. 4 Conclusions There are no simple answers to the present problems associated with providing income in retirement.
Individuals are different and have differing requirements.
This Report offers ideas and solutions to provide individuals with both choice and flexibility whilst ensuring they do not fall back on State benefits. Our aim is to open the public debate on these issues.