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Axa set for variable annuity deal

Axa is poised to launch a variable annuity product early next year as part of an overhaul of its retirement planning.

The firm has been working with colleagues from US arm Axa Equitable and is considering offering a version of its Accumulator variable annuity.

The US product offers a range of investment options and guaranteed minimum income benefits.

Axa’s belief that there is a need for third way annuity products has been backed by research released last week by Tillinghast . The firm says it believes up to a fifth of the £300bn the baby boomer generation have saved for their retirement could move into variable annuity and other drawdown products over the next nine years, creating a £70bn market.

Axa spokesman Paul Riddell says: “We are looking very seriously at the retirement market as a market that needs some innovation and is crying out for Accumulator-style products.”

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