View more on these topics

L&G offers annuity split

Legal & General is offering more pension flexibility with its with-profits


annuity.


Customers can split their pension fund between the company&#39s with-profits


plan and a conventional annuity.


The minimum purchase price for the with-profits annuity is £1,000.


Unlike Standard Life&#39s recently launched product, which allows clients to


change their anticipated bonus rate during the course of the plan, L&G


clients must choose a fixed anticipated bonus rate at the outset.


Because of this, L&G says the public should get independent advice before


choosing the level of income they need as this could fluctuate each year


depending on the rate of bonus chosen and the actual bonuses declared.


With-profits-linked annuities are proving increasingly popular due to


falling annuity rates. The Annuity Bureau says the products will gain a 20


per cent market share worth £1.5bn by the end of the year.


The bureau says low annuity rates are pushing up demand for the products.


L&G pensions marketing director Andy Agar says: “We believe this market is


moving quickly from niche to mainstream and fills a very important gap


between the no-risk area of a guaranteed conventional annuity and the


higher- risk area of income drawdown.


“In the future, many people will mix and match conventional guaranteed


annuities to meet the cost of fixed outgoings and with-profits annuities


for the opportunity of an increasing income during retirement.”

Recommended

Five more watchdogs for Insurance Ombudsman

The Insurance Ombudsman Bureau has appointed five ombudsmen to supportprincipal ombudsman Tony Boorman.The appointments precede the transition of the IOB and the other fiveombudsmen schemes to the single Financial Ombudsman Service. This is due tohappen during the latter part of 2000 following the implementation of theFinancial Services and Markets Bill.The associate ombudsman is Peter Hart. […]

Uncertain future for IFAP could see link with Aifa

The future of IFA Promotion hangs in the balance, with integration withAifa being touted as an option, following its proposal to link up with adotcom venture.Insiders say several sponsors, including Standard Life, Scottish Widowsand Scottish Amicable, are unhappy over how the plan was put to the IFAPboard. If the proposals are rejected, there could be […]

Brokers show loan optimism

More than half of brokers are optimistic the mortgage market will improvein the next quarter, according to research by the Mortgage Business.Currently, 54 per cent of brokers are optimistic that business willimprove in the next quarter.Brokers have reported significant increases this quarter in sales ofself-employed and flexible mortgages, with 38 per cent having seen anupturn […]

Private Label buys TMP as it targets North-west

Private Label has taken over The Mortgage Partnership to gain access tocustomers in the North-west.Cheshire-based TMP will become Private Label Northern Operations Centre.TMP will continue to offer its own products, transferring to Private Labelmortgages by the summer.All TMP employees are being offered jobs with the new company.Co-founders John Mawd sley and Ian Ward will join […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment