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Which? scraps annuity advice plans after Budget pensions shock

Consumer group Which? has ditched plans to launch an annuity advice service following the Chancellor’s Budget pensions overhaul.

Last September, the organisation confirmed it was developing a new service, called Which? Annuity Advisers, that would offer advice on products across the annuity market.

At the time, Which? said savers who used the new service would also have the option of buying an annuity using a whole-of-market non-advised channel. 

But the plans have been scuppered by radical changes to the pensions tax system announced in the Budget in March.

The reforms, which come into effect from April 2015, will give savers greater flexibility over how they can access their pension pot from age 55.

The changes are expected to lead to a huge drop in demand for annuities, with Legal & General predicting that annuity sales across the market will fall by 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.”

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