Consumer group Which? has ditched plans to launch an annuity advice service following Chancellor George Osborne’s Budget pensions overhaul.
In September last year the organisation confirmed it was developing a new service, called ‘Which? Annuity Advisers’, that would offer advice on products from across the annuity market.
In March this year Osborne announced changes to pension rules that will give savers greater flexibility over how they can access their pension pot from age 55. The reforms will come into force from April next year.
The changes are expected to lead to a huge drop in demand for annuities next year, with Legal & General predicting annuity sales will fall 75 per cent next year.
A Which? spokeswoman says: “The Which? Annuity Advisers pilot drew to a close at the end of February, and following a review of our business options, we have decided not to continue the service.”