London & Colonial is planning to launch an advised-only guaranteed drawdown product by April 2015, when the new pension freedoms come into force.
Final details are yet to be confirmed but it is likely savers will be offered a choice of guarantees – such as investment return, income or death benefits – that suits their circumstances.
L&C head of product and business development Adam Wrench says: “We are in the process of developing a drawdown product that will bridge the gap people are looking for when the new freedoms come in next year. They want freedom and flexibility as well as guarantees.
“The industry needs to learn from the third way products that were developed a few years ago but that were never that successful.”
New technical services manager Nigel Darnley, who joins L&C from Ageas Protect, will be responsible for delivering the new products.
Darnley previously held roles at MGM Advantage, Quilters and Winterthur Life.
L&C currently offers a standard drawdown arrangement but this will be its first guaranteed drawdown product.