Living Time sales and marketing director Dave Harris says many adviser firms have mistakenly categorised the annuity as a third-way product which would mean that only advisers with specialist qualifications can sell it due to its complexity.
The product is an investment within a drawdown plan which provides guaranteed income payments for a set number of years or until the client reaches age 75.
The guaranteed maturity payout can then be reinves- ted in a drawdown plan or an annuity.
Harris says the product is written under unsecured pension rules, so many adviser firms assumed it did not have a capital guarantee.
Many firms have now reclassified the product, allowing all their advisers to sell it.
Harris says: “We are not like variable annuity products. It is not as complex and there is no investment risk. We are not the third way, we are the new way.”