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Opening up the annuity market

UK savers may be about to gain access to a plan that will allow them to derive an annuity-style income and also leave some of their savings to their children if they die early.

A Gibraltar-based scheme has been in existence for more than a year but it has only been available to the wealthy and not through any high-street names. The firm, Open Annuity, which offers the product, says it will be available to onshore, less well-off investors through big domestic UK players.

The move would provide a challenge to the existing status quo which has left many IFA clients dissatisfied at being unable to pass on their retirement fund at death.

The current discussion about the open market option and whether the FSA regulations are working is a necessary one but perhaps only part of the equation.

People want more choice. Perhaps this plan, if it meets the rigours of best advice, will allow IFAs to present another choice to clients.

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