Pru annuity sales 35% lower as Budget changes continue to bite

Laura Miller
clock

Prudential has become the latest life company to report severely hit annuity sales in the wake of radical reforms to how people can access their pension.

Individual annuity sales were 35% lower in the first quarter of the year, the life company said, costing it £36m. Prudential said this reflected the "overall downturn in the market though 2013 as policyholders have increasingly chosen to defer retirement". However the hit is also likely to have been caused by changes in the March Budget which mean that from 2015 all individuals aged 55 and over can access their entire pension fund as cash, removing the effective requirement to buy an annuity. On Wednesday Legal and General (L&G) reported that it saw its individual annuity sales dro...

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

Pension transfers: Transparency vital in push to raise standards

Pension transfers: Transparency vital in push to raise standards

A glass half full for pension transfers?

Anthony Rafferty
clock 28 February 2025 • 3 min read
Average pension transfer times dipped during 2024 while values grew

Average pension transfer times dipped during 2024 while values grew

Origo data suggests overall pension transfer times took 12.3 days to complete last year

Martin Richmond
clock 25 February 2025 • 2 min read
IHT shake-up: What will come of SSAS discretionary death benefits?

IHT shake-up: What will come of SSAS discretionary death benefits?

'Essential that issues are addressed and rectified in the draft rules'

Caitlin Southall
clock 17 February 2025 • 4 min read