Just Retirement has cut more than 90 jobs and slashed pension contributions in a £14m cost-cutting programme in the wake of changes to pension freedoms announced in the Budget.
In its annual accounts, published this week, the firm also scrapped its pay review for all employees and executive directors and reduced pension contributions.
Those employees remaining whose company pension contributions were 10 per cent – approximately 75 per cent of the workforce – saw a one-year 5 per cent reduction in August 2014.
The reductions are the result of a cost-cutting review announced immediately after the Budget, when the firm’s share price plummeted on the back of new pension freedoms.
The firm said annuity sales have halved since the Budget but is expecting sales to bounce back next year.
Just Retirement’s accounts state: “Once guaranteed guidance is successfully implemented in April 2015, the group believes that there will be a return to growth in the secure income market.
“Many customers in our target market will continue to use all or some of their pension savings to purchase a secure income for life.”
In April MGM Advantage, which employs 250 people, said it would cut 80 roles linked to its annuity business in anticipation of a drop in sales.