Pension freedoms which will allow savers to access their savings without any penalties from 6 April 2015 will be extended to those who are already in retirement.

George Osborne will announce in his budget on Wednesday (18 March) that pensioners will be able to sell their annuity from 6 April 2016.

The chancellor said: 'We've already given freedom to people saving for a pension, what we're going to do today is give freedom to the five million pensioners who have an annuity.

'Now for many of them that will be the right thing to have, but some will want access to that money so we're going to change the law.'

Currently pensioners who want to sell their annuity face a 55 per cent tax cha...

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