Scottish Widows has confirmed details of its new enhanced annuity offering for the adviser market.
The Scottish Widows enhanced annuity will be available to customers between the ages of 55 and 75 and requires a minimum total investment of £5,000.
The product offers both single and joint life options and guarantee periods of 0, 5 and 10 years can be selected.
Widows’ enhanced annuity is being made available to advisers through three market portals – Avelo, Assureweb and Tomas.
Scottish Widows head of annuity propositions Mike Teall says: “The enhanced annuity market will be worth nearly £6bn this year and is expected to grow by up to 10 per cent yearly due to an ageing population and baby-boomers reaching retirement.
“For Scottish Widows it is absolutely the right time to enter the market with a competitively priced enhanced annuity and this is part of our plan to increase our share in the annuity market to over 10 per cent in the next few years.”
Rowley Turton director Scott Gallacher says: “More competition in the enhanced annuity market should be a good thing but I am not convinced Widows will be competitive on rates.”
Widows first announced plans to return to the advised annuity and protection markets in February last year.
At the time, chief executive Toby Strauss said the provider’s offering would focus on mid-market clients and include an enhanced annuity option.