As one door closes...

The so called ‘third way’ product space has grown rapidly in recent years as providers continue to develop innovative solutions to bridge the gap between the stability of annuities and the flexibility of income drawdown. The move began in mid-2006 when Living Time launched its fixed term annuity. This was closely followed by Aegon and MetLife’s launch of variable annuity products, a concept well known in the US but previously unheard of in the UK. While fixed term annuities initially struggled to gain a foothold in the market the entrance of LV= was seen as a positive move. Other prov...