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Royal London scraps single-tie annuity deal with the Pru

Royal London has scrapped its single-tie annuity referral deal with the Prudential and introduced an open-architecture web portal allowing retirees to shop around with ten different providers. 

Money Marketing revealed last week that Royal London was reviewing its commercial tie-up with the Pru in the wake of this year’s Budget.

Royal London has not removed commission, however, and will earn 1.8 per cent on standard annuity referrals and 2.5 per cent on enhanced annuities.

The new Royal London ‘Annuity Bureau’ website provides guidance on at-retirement choices and the option to transact an annuity purchase with a panel of enhanced and standard annuity providers. It will be targeted at Royal London’s circa 4m non-advised clients. 

Just Retirement has been contracted to power the annuity website.

The ten annuity providers selling through the site are: Aviva, Canada Life, Hodge Lifetime, Just Retirement, Legal & General, LV=, MGM Advantage, Partnership, Prudential and Scottish Widows.

Royal London chief executive Phil Loney says: “Every year thousands of our policy holders reach retirement age. Recently the number of people taking cash has doubled, and we anticipate this trend to continue. Many people are likely to take the cash element whilst keeping the rest of their pot invested, and consider taking an annuity later in life.”

“It’s vital people make the right decision when purchasing an annuity – it is a crucial, irreversible decision which affects their income for the rest of their lives. I urge all our direct, non-adviser customers who are approaching retirement to make time to use our new service so they get the right type of annuity, with the highest income available to them.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. L&G have an annuity referral agreement with Sun Life Financial of Canada, for which they pay commission of 3.5%!

  2. Are you not making a presumption Mr Loney that an annuity is the best course of action ?

  3. Take the lot and buy a Lambourgini!

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