Phoenix offers lump sum exit on low value annuity contracts

The closed life fund consolidator said clients with low paying policies can swap future payments for a one off lump sum provided that the cash equivalent value of the annuity does not exceed £2,000. It said it was one of the firm life and pension providers to offer this option. The move follows a change in the law last year which allowed people over 60 with pension pots of £2,000 to take the money as a one off lump sum rather than a regular income in retirement. The amount Phoenix is offering under the pilot scheme will reflect all the potential future benefits a policyholder might...