View more on these topics

Skandia looks at move into annuity market

Skandia is considering launching a range of annuities and making other providers’ annuities available on its platform.

Head of proposition Graham Bentley (pictured) says that Skandia, which has not offered annuities in the past or made them available on the platform, is looking to develop a range of annuities, which may include a fixed-term offering. He says: “People want income and there are a lot of people who are approaching retirement who want a degree of certainty about what they are going to get, which is why people are taking fixedterm annuities.

“We are looking at both a range of annuities and offering access to annuities on the platform. We have got the capability to help people accumulate wealth, but we have not been good at providing investors with decumulation solutions.”

In February, Scottish Widows announced it will offer an enhanced annuity as part of its forthcoming mid-market annuity suite.

Worldwide Financial Planning IFA Nick McBreen says: “The annuity sector is going to become dog-eat-dog because we have got an ageing population. Providers are thinking if they are not in the annuity area, investors will not look at them for other types of business.”

Bentley says Skandia is also considering launching a range of guaranteed funds.

He says: “There are a set of people who are focused on return outcomes rather than risk buckets. We are looking at launching funds around this and potentially using guarantees.”

Hargreaves Lansdown investment manager Ben Yearsley says: “Many providers have launched these types of products that guarantee returns or protect against downside risk.

“However they are not an easy sell because investors are put off by their complexity.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm