Hargreaves chief: Future of standard annuities in doubt

Hargreaves Lansdown's chief executive Ian Gorham has said the reform of the rules around annuities in the 2014 Budget is long overdue, and could well spell the end for standard annuity products.

On Wednesday the Chancellor unveiled a set of sweeping reforms of the retirement and savings market, in turn boosting Hargreaves' share price by 15% as investors predict the D2C giant will clean up as a result of the increased ISA allowance. Gorham, speaking to Investment Week, said the changes had come as a surprise, but he welcomed the overhaul of the annuities market. "It was overdue. I don't think many people like annuities, because of the concept of giving your money to one company for so many years in a one-shot product," he said. Annuities look particularly poor value at the...