L&G individual annuity sales drop 40% after Budget reforms

Jenna Towler
clock

Legal & General (L&G) saw its individual annuity sales drop 40% in the first quarter of the year, with sales down from £406m in 2013 to £244m.

Its first quarter results said this included a circa £15m impact from cancellations during the extended cooling off period offered after the Budget changes were announced. The firm has previously predicted the annuity market will shrink by as much as £9bn due to George Osborne’s reforms which make it possible for savers to access their whole pension fund age 55. However, L&G said its retirement arm’s new business premiums quadrupled to £3.3bn in Q1, up from £0.8bn in 2013. It said the growth was mainly down to securing the largest ever UK bulk annuity contract with the ICI Pension Fu...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

British Steel a stark reminder of obligations around client files

British Steel a stark reminder of obligations around client files

Lawyer Philippa Hann reflects on her work around the pensions case

Hope Coumbe
clock 27 March 2024 • 2 min read
SSAS and the general levy: A victory for common sense

SSAS and the general levy: A victory for common sense

The value of SSASs after general levy consultation outcome

Caitlin Southall
clock 26 March 2024 • 5 min read
Pension dashboard operators join forces to push project forward

Pension dashboard operators join forces to push project forward

Coalition aims to bring 'dashboards to consumers as early as possible'

Jasmine Urquhart
clock 25 March 2024 • 2 min read