Retirement 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.