Prudential has launched the first with-profits annuity which can be purchased with protected rights funds, following negotiations with the Department for Work and Pensions.
Until A-Day, retirees were unable to put protected rights assets into an annuity as the pensions rules require any such assets do not fall in value. Prudential, as well as with its largest with-profits annuity rival Legal & General, has been lobbying the DWP to find a route which would allow investors to perhaps earn more than a flat income for the life of the annuity but without reducing the value of the original income. Prudential is now be the first to market with a product on Thursday 8th February which protects the assets invested – and still allows up to 25% of the protected rights ...
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