PBR - Hybrid annuity halt 'lacks foresight'

The Government highlighted the potential for hybrid annuities, or 5 for life style products, in its Pre-Budget Report (PBR) last year but said in yesterday’s PBR it would not introduce the annuities. The products would have allowed consumers to receive a guaranteed income and still benefit from any future investment returns. Hybrid products also have the potential to appeal to a broader range of customers who find existing products unattractive. The annuity enjoys popularity in the US and Japan, and the Standard Life hoped the Government would introduce the necessary tax changes to remove...