The news, which we first tipped in May, will see customers guided through their annuity options and offered rates from a panel including Aviva, Aegon, Prudential, Canada Life, Legal & General and Partnership Assurance.
Aviva takes a cut of the commission the referral service, The Annuity Team, receives from the chosen provider but the percentage has not been disclosed.
The firm has piloted the model with retail customers and a quarter of all customers referred to date have received an enhanced rate.
Aviva is now extending the service to its maturing pension customers. It insists it checks they do not have an existing financial adviser first.
The Annuity Team has also signed referral deals with Paradigm and is looking for new partners.
What are your thoughts? Surely people with smaller pots, who are often ignored by the industry because they are not as profitable as wealthier customers, will benefit from this arrangement?
Should adviser firms that feel small pots are not worth the hassle follow the example of Paradigm and refer cases on to such a service?
Aviva says it will carefully check customers have been genuinely orphaned by their IFA before referring them to The Annuity Service but it has slipped up here in the past. Could this pose a problem?