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.
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.”