The provider said operating conditions had become “much tougher” since the Budget after announcing third quarter individual annuity sales – for the three months to 31 March – of £288m, up a third on the corresponding period in 2012-2013.
Changes announced at Budget 2014 gave retirees unprecedented access to their retirement savings and effectively removed the near-obligation of using an annuity to draw an income.
Just Retirement is one of several providers to have launched a one-year fixed-term annuity, which is aimed at those who wish to defer making a decision about how they will take an income in retirement until next year, when the changes come into effect. Further product launches are in the pipeline, it said on Monday.
Just Retirement CEO Rodney Cook said: “Although operating conditions have become much tougher since the Budget, with sales at around half of pre-Budget levels, we are rapidly adapting our model to the new environment.
“I am confident that by continuing to offer customers a fairer deal in retirement we can deliver further shareholder value.
“Financial intermediaries are still rightly advising many of their clients that a guaranteed income for life is often the best retirement solution. Our underwriting skills mean we offer them competitive terms, whilst protecting against the risk of outliving their money.”
