UK - The Annuity Bureau has unveiled a restructuring plan to adapt to changes in the pensions market and meet the needs of small savers.
The firm predicts that the Finance Act – which is expected to become law in the next few weeks – will lead to a period of innovation ahead of A-Day in 2006.
The Annuity Bureau says it is responding by introducing new services, including lowering its minimum pension fund size to £20,000. It will also help retirees “shop around” for the best annuity suited to their needs.
Managing director Peter Quinton said: “There is a very large sector of the population whose pension requirements are being insufficiently catered for largely because many advisers and insurers feel it is not economical to administer smaller pension funds.
The irony is that these are the very people for whom every penny counts and we have decided to act in order to assist them.”
The bureau also plans to offer advice on income drawdown and will be increasing the investment support on offer to retirees significantly throughout the lifetime of products provided.
Canada Life has signed a £351m bulk annuity contract insuring the pensioner liabilities of 2,510 members and dependents in the AA UK Pension Scheme.
In this week's Pensions Buzz, we want to know if you believe there is ever a case for combining retirement savings products with other savings products, and if the PPF levy for sponsorless schemes is appropriate for DB consolidators.
The Insolvency Service has disqualified four directors of trustee firms from running companies for a total of 34 years following an investigation.