The High Court has approved Royal London's plan to allow customers with guaranteed annuity rates (GARs) to convert their guarantees into a top-up for their pension pot.
In April, the provider announced plans to offer an "actuarially fair exchange" for GARs in a bid to stop policyholders throwing away the value of the guarantees - noting Financial Conduct Authority (FCA) estimates showed that three in five GAR policyholders had surrendered guarantees to access pension freedom since April 2015. The provider will now give these policyholders the option of exchanging the guaranteed annuity rates attached to these policies for a substantial cash uplift. While most uplifts are expected to be in the 40% to 80% range, the amount will depend on the terms of t...
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