The creation of a secondary annuities market is meant to provide more flexibility and freedom to people who in the past had to buy an annuity with their pension pot, according to the government. The recent pension reforms have freed up the market so that annuities are no longer compulsory.

These changes are meant to remove current tax restrictions and allow individuals to sell their annuity bought with funds from a tax relieved pension pot, in return for a taxable lump sum, or for the sale proceeds to be paid into a more flexible pension product.