Scottish Equitable Immediate Vesting Personal Pension Annuity issued

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Scottish Equitable Immediate Vesting Personal Pension Annuity issued

Wed 3rd May 2006

A Scottish Equitable Immediate Vesting Personal Pension Annuity (IVPPA) has been launched today as an extension to the company's open market option.

The product will simplify the payment process and potentially offer better annuity rates through the consolidation of pension pots at a normal retirement date, according to Scottish Equitable.

It will come into effect at normal retirement age to consolidate pension funds with a new provider, which will then pay the cash entitlement and set up the annuity.

Scottish Equitable states that the IVPPA will mean less admin for clients, as it only requires one single combined tax-free cash payment and one annuity payment.

Higher rates will be available on the Scottish Equitable Immediate Vesting Personal Pension Annuity through combined pension pots for funds exceeding £50,000.

"This is the first in a number of developments to our annuity offering, the next being the launch of a Value Protection Annuity," said Ian Kerr, head of marketing for Scottish Equitable.

"Despite the success of our initial launch we do not intend to stand still."

In 2004 the annuity market was worth £5.6 billion, Scottish Equitable states, and the Association of British Insurers has predicted that it will reach the £10 billion mark by 2010.