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Aviva looks at wider annuity deal for small pensions

Aviva may begin offering other providers’ annuity products alongside its own for clients with small pension pots.

Head of annuity marketing Darren Dicks says: “The vast majority of customers have what many advisers believe are uneconomical pots and there is a shortage of advice. About 60 per cent of customers are sticking with their pension provider and for many that is not very good value. We have a range of options, one of which is a third-party solution to offer other providers’ annuities where we cannot offer a good rate. We could do it ourselves or we could do it with an already established firm.”

Ernst & Young financial services director Malcolm Kerr says: “Smaller pots, in particular, need the best possible annuity rate and it is unlikely that Aviva is always able to provide that. I think this is a very sensible idea.”

Worldwide Financial Planning IFA Nick McBreen says: “It complicates the food chain in terms of who is giving advice. This reinforces that people have to get the full picture before making a decision on annuitising.”

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