Skandia is predicting a quarter of all annuity sales are at threat as a result of the short term raising of the small pot allowance to £10,000 alone.
Partnership Assurance had more than halved in value by 57 per cent at 3.14pm, while Just Retirement was down 40.6 per cent. Legal & General were down 13.2 per cent by 3.19pm, while Aviva was down 7.4 per cent.
Hargreaves Lansdown was up 11.89 per cent.
Skandia retirement planning manager Adrian Walker says: “A quarter of annuity sales are under threat as a result of changes to single pot triviality rules. Today’s budget announcement confirmed that consumers with pension pots of up to £10,000 are able to access their savings without having to buy an annuity. Our analysis of ABI data suggests that around 25 per cent of annuity sales are currently for pension pots of less than £10,000.”
A spokesman for Just Retirement says: “Just Retirement notes the proposed reforms to the retirement income market in today’s Budget statement. We support the chancellor’s comments that annuities have a positive role to play in helping customers secure a guaranteed income for life. Just Retirement also welcomes changes in legislation that improve flexibility for retired people.
“Proposals to ensure that all consumers will receive guidance at retirement are clearly a positive move in improving customer outcomes. This could suggest an increase in the numbers of customers shopping around using the open market option.
“Annuitisation has not been mandatory for several years, yet 90% of consumers continue to choose wisely to secure a guaranteed income for life by annuitising. The proposed reforms suggest more choice for all retirees, ensuring better value for money for those who continue to annuitise.”
