Darling 'disappoints' with annuity announcement

The recent announcement from chancellor Alistair Darling that so-called 'third-way' annuities will not be made available to UK consumers has been described as "very disappointing" by one financial services provider.

Aegon is convinced that 'third way' annuities would offer retirees a guaranteed income and the possibility of making investments, and the company has expressed its regret that these options will not be introduced.

Moreover, Aegon has refuted Mr Darling's claim that only a relatively small number of people would stand to benefit from the annuity products, suggesting that increased choice is an advantage for all consumers.

Rachel Vahey, head of pension development at Aegon, said: "Although Aegon is very disappointed in the governments pre-Budget announcement, we will of course continue to look at product innovation within the current legislative environment.

"We will continue to lobby in order to illustrate the real need for alternative products that meet the need for asset decumulation in retirement."

Figures compiled by the Barings Asset Management group recently suggested that more than three million Britons are relying entirely on their property investments to provide financial security in retirement.