Canada Life is introducing an open market option facility on its Annuity Growth Account for the draw...
Canada Life is introducing an open market option facility on its Annuity Growth Account for the drawdown market, from 3 July 2000.
The account, which launched 1 June, has already had £85m worth of quotes generated by IFAs, the average quotation being for funds in the neighbourhood of £150,000.
IFA feedback since launch has caused the group to extend the product to the drawdown market.
For drawdown clients, the trustees of the drawdown arrangements are the buyers of the annuity and the annuitant will be subject to the original drawdown scheme rules.
The Annuity Growth Account allows a retiree to purchase five-year rolling annuities, thereby offering the potential to defer a lifetime annuity purchase up to age 85.
Under current drawdown rules, a person must buy an annuity before reaching age 75.
Contact: Neil Stevens on 01707 422011
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till