The Annuity Bureau is restructuring its annuity services in anticipation of a new era for the annuity market and is also bringing sister company The Drawdown Bureau into its fold.
The Annuity Bureau expects that once the Finance Act has been completed, the pension annuity market will open up and offer new products. It is setting up three new services and lowering its minimum pension fund size to £20,000.
The first service, a self-select annuity service available on a commission-only basis, entails TAB researching the best deal for a client's circumstances and then arranging for an annuity to be set up.
The second is an annuity advice service with an initial fee of £100, with further work on fee or commission basis. TAB researches all the client's existing pensions and advice covers all aspects of conventional annuities.
The third is a full advice service with an initial fee of £200 with further work on fee or commission basis. TAB will provide investment advice on the full range of retirement options including investment-linked annuities and drawdown pensions.
Managing director Peter Quinton says: “There is a very large sector of the population whose pension requirements are being insufficiently catered for, largely because many advisers and insurers feel it is uneconomic to administer smaller pension funds. The irony is that these are the very people for whom every penny counts and we have decided to act to help them.”