Shake-up announced in budget lets retirees choose how to invest instead of forcing swap of pension savings for annuity
The UK market for individual annuities will shrink by some 75% after government measures freeing retirees from having to buy them come into effect next year, one of the biggest annuity providers forecast on Wednesday.
Nigel Wilson, chief executive of life insurance and pensions provider Legal & General Group Plc, said he expected the amount of money going into individual annuities to shrink to around £2.8bn a year from nearly £12bn, though he did not give forecasts for the group's own future business mix.