View more on these topics

Retirement Advantage: ‘Ambitious plans’ to develop annuity within drawdown wrapper

UK-Currency-Money-Coins-with-pound-sign-700x450.jpgRetirement Advantage has said it remains committed to the annuities market after being acquired by Canada Life last year.

Retirement Advantage offers both a standalone annuity and an annuity within a drawdown wrapper.

Canada Life also offers standalone annuities, so Retirement Advantage has decided to withdraw its own standalone product.

This had led to confusion that Retirement Advantage had quit the annuity market altogether. This would have followed in the footsteps of major providers like Aegon, LV=, Prudential and Standard Life, who have all pulled their open market options.

A Retirement Advantage spokesman says: “Going forward we will continue to offer an annuity within our drawdown product as there are significant differences between an annuity held within a drawdown wrapper and a traditional standalone annuity.

“Our drawdown annuity will continue to be fully underwritten and offer competitive rates, a wide range of death benefits and income escalation, with additional tax advantages and flexibility.

“We have ambitious plans to develop [drawdown wrapper] The Retirement Account and will update advisers as we move through the year.”

According to research from Hargreaves Lansdown, firms representing 20 per cent of market share in the annuities space have exited since 2004, as sales have dropped from 350,000 a year to 80,000 a year.

Many of the remaining providers offer bespoke products or enhanced rates.

Recommended

7

May pledges to safeguard pensions from greedy bosses

Prime Minister Theresa May has promised to crack down on highly paid executives who do not support workers’ pensions enough. In an article for Sunday’s Observer May argues markets need to be rebalanced in favour of ordinary people. She makes the case on the back of outsourcer Carillion going into liquidation last week forcing the […]

FSCS declares three Sipp firms in default

The Financial Services Compensation Scheme has declared self-invested personal pension operators Stadia Trustees, Brooklands Trustees and Montpelier Pension Administration Services in default. The lifeboat fund has received around 150 claims for compensation relating to the three businesses. Those claims relate to how the businesses set up, operated and administered Sipps through which people invested in […]

What's going on in the 'offshore' world?

Graeme Robb, Senior Technical Manager at Prudential, explores the current state of the nation for offshore issues and highlights areas which may be particularly relevant to advisers. In the context of insurance companies, ‘offshore’ can be a relatively straightforward matter. Like their onshore equivalent, offshore bonds are ‘non-qualifying’ for tax purposes, meaning that all gains […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment