Annuity provider Just Retirement has launched a one-year annuity following sweeping pension reforms announced in the recent Budget.
The firm saw shares plummet 32% in the wake of the announcement of wide-ranging pension reforms last month. It has now followed competitor LV= by offering a one-year version of its fixed-term annuity, ahead of the changes which come in next April.
Just Retirement director Stephen Lowe said: “The significant changes announced by the Chancellor in the Budget are naturally making people nearing retirement think carefully about how to get the most from their pensions.
“We recognise that there are many questions still to be answered and some professional intermediaries may prefer, at this point, to utilise a short-term solution for their clients’ funds.”
In the Budget, the Chancellor announced changes to tax and drawdown rules in order to allow savers more control over their pension pots when they reach retirement. The surprise move triggered a sell-off in life insurers and pension providers.
Along with Just Retirement, annuity provider Partnership Assurance Group saw share prices dive 43% in the wake of the announcement. Legal & General fell 12%, while Standard Life, Prudential and Aviva all fell by between 2% to 4%.
Shortly after, Standard Life announced its income drawdown range would be opened up to customers with £30,000 of pension savings. Previously, those with less than £50,000 were excluded.
In early April, LV= launched a one-year annuity in response to the upcoming Budget reforms. The firm described the product as offering clients and advisers "a breathing space".
