Aviva and Just Retirement will enter the fixed-term annuity market this year, with Aviva preparing to launch a new product in the second quarter.
The providers will join LV= and Living Time in the growing fixed-term product market.
Aviva head of retirement Darren Dicks says: “The second quarter is the anticipated launch date, based on all the things we need to get in place to ensure that it launches smoothly.”
Just Retirement director of external affairs Steve Lowe says the firm will ideally launch a fixed-term annuity product in the summer.
He says: “There are a few developments that we are evaluating that we would like to bring to the market and a fixed-term annuity is one of them. We would like to get to market for summer.”
Last week, Money Marketing revealed that MetLife had agreed a deal to distribute Living Time’s fixed-term annuity product. MetLife is expected to launch its own fixed-term annuity product by 2012.
In February, LV= launched the protected retirement plan, a fixed-term annuity designed to compete directly with Living Time’s products.
Partnership says it is also looking at fixed-term annuities but does not have any immediate plans. Managing director of retirement Andrew Megson says: “We are very interested in this area and are looking at it closely, however we do not propose to enter this market at present.”
Retirement Partnership managing director Steve Lewis says: “It is a good thing that more competition is coming into the market. 2011 may be the time for fixed-term annuities.”