Mortgage News
Just Retirement launches one-year version of fixed-term annuity
Annuity provider Just Retirement has launched a one-year version of its fixed-term annuity in response to the far-reaching changes affecting drawdown announced at last month’s Budget.
The move will enable pension savers to take tax-free cash and income but maintain the flexibility to rethink their options when the proposed new rules come into force next year.
The group, which also offers enhanced annuities, said it believed some people approaching retirement will want to wait to see what new choices might be available to them in April 2015.
Measures announced by Chancellor George Osborne at Budget 2014 gave retirees unprecedented access to their pension savings.
The announcements caused an immediate drop in annuity providers’ share prices as investors questioned the durability of their business models.
Just Retirement group external affairs and customer insight director Stephen Lowe said: “We are in a time of transition when the retirement income landscape is facing a massive upheaval.
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“We shouldn’t forget that many tens of thousands of people will want to retire and most will need to switch on a regular income. Fixed-term annuities are one-way of making the transition into retirement while waiting for the dust to settle.”
LV= launched a similar product last week, also in response to the Budget changes.