Enhanced annuity provider Reliance Mutual has pulled out of the annuity market following radical pension changes announced in the Budget.
The firm will cease offering annuities from 25 July but says existing policies will not be effected.
Chief executive Mark Goodale says: “As a membership organisation, it is important all our business activities are in the best interests of the members. The combined effect of the high capital requirements of annuities and the significant changes taking place in the annuity market prompted us to review our overall annuity strategy.
“Whilst it remains in members interests to offer an annuity option to our existing members, from 25 July 2014 Reliance Mutual will no longer offer annuities in the open market including enhanced/smoker annuities.
“This decision will not affect any of our existing members and policyholders, who will continue to enjoy the options they currently receive on maturity, and our staff will also be unaffected.”
The firm launched its smokers annuity in 2001, catering for retirees smoking more than ten cigarettes a day for ten years.