London & Colonial launch Flexible Open annuity with “cash out” option

Last month the Treasury announced (in their “Government response to their budget paper “Freedom and Choice in pensions”) that they would extend the new pension freedoms to the annuity market from April 2015. The Treasury stated that the new rules implemented in April 2015 would allow clients to take advantage of the new freedoms within annuities “on the condition that this is specified within the contract at the point of purchase”.

London & Colonial have announced the launch of its Flexible Open annuity (with “cash out” option) contract that has been “future proofed”. The Flexible Open annuity policy  contains the relevant clause required in order for clients to  take advantage of the new freedoms announced by the Treasury when they come into effect in April 2015.

The company is also aware of industry concern and reports that “Millions of pension savers will be prevented from taking cash freely from their retirement funds next April unless they pay hefty penalties that could slash their pots by more than 20% according to reports.”

Adam Wrench, Head of Product & Business Development says “London & Colonial already has a drawdown contract that will allow clients to take advantage of the additional flexibility in April next year. Now with the launch of our “Flexible ‘cash out’ annuity” clients will face a simple choice as to which contract will be most cost effective for them to use in order to access the new freedoms according to their circumstances.”