Closed book pension provider ReAssure plans to stop offering annuities to the “vast majority” of existing customers after agreeing a referral deal with LV=.
ReAssure, previously known as Windsor Life, says it will phase out its annuity offering over the next six to nine months. Customers will instead be passed on to LV=’s annuity shopping around panel, which covers around 90 per cent of the market.
A ReAssure spokeswoman says: “ReAssure will be phasing out its own annuity offering for the vast majority of customers over the next six to nine months, by which time virtually all customers considering annuities will have access to the LV= service.”
LV= says ReAssure will receive a commission for non-advised referrals, although it was unable to confirm how much this will be. LV= has also increased the number of qualified advisers it employs from 5 to 11 in a bid to support the arrangement.
LV= managing director of life and pensions Richard Rowney says: “The Chancellor’s Budget has given retirees far more choice and flexibility as to how they take an income from their pension savings.
“We believe it is increasingly important that people are encouraged to shop around for a retirement income solution and believe that advice can significantly improve the outcome a retiree achieves.
“We are committed to providing those approaching retirement with choice as to how they structure their retirement income.
“Our retirement income service is designed to make retirees, who wouldn’t typically seek financial advice, aware of all the options available to them and help them to make the most of their pension fund. Partnering with ReAssure means we can help them to boost the retirement income of even more retirees.”
ReAssure chief executive Matt Cuhls adds: “In LV=, ReAssure believes it has found a partner that can support us in delivering the strong customer outcomes that are a cornerstone of our business model.”