Resolution shares continue sliding as insurer says annuities will remain important
Resolution, the UK insurer, has warned this morning that the radical proposals made by chancellor George Osborne in the Budget yesterday will have a “far-reaching” impact, with the implications taking “time to be fully understood”.
Despite the negative implication for new business, however, the firm’s confident annuities will continue to be an important product. And more, it says the proposals are, overall, “a positive” for the retirement savings market.
The increased flexibility for savers means the attractiveness of placing additional contributions into a pension has now increased.
Furthermore, Resolution says its Friends Life business is well placed to benefit from these changes.
The changes laid out in yesterday’s Budget mean that, from April of 2015, savers with defined contribution policies won’t have to buy an annuity upon retiring, but will be free to withdraw from their pension pot at any time.
Resolution shares are down two per cent this morning to 330p, having plunged 4.6 per cent yesterday on Osborne’s announcement. The same was seen across the sector.
Source: Google