Independent insurance broker Rockingham Retirement is to team up with life firms Prudential, L&G and MGM to form The Annuity Clearing House (ACH), a specialist independent financial adviser (IFA) service that allows them access to a range of annuity products to suit clients' needs.

Due for launch on 1 September 2009, the ACH will enable IFAs to get the best value deal for clients, regardless of pension fund size. It will offer a range of products, including conventional products, impaired/enhanced annuity products, with-profit and impaired/enhanced with-profit annuity deals.

"Our new service is going to revolutionise the way annuity products are sold in the UK," said Steve Hunt, managing director at Rockingham Retirement. "Official data shows that fewer people than ever are utilising the Open Market Option when looking for the best annuity deal: the key reason is that most pensioners believe that there is simply too much complex trawling of the market to find the best deal.

"But ACH will enable the individual, through their IFA, to achieve the maximum possible income for the least amount of effort."

Hunt added that ACH will also be paying superior commission costs compared to if the IFA had written the business themselves. "It is a win win situation for both IFA and the client."

Three major annuity providers are currently trialling the ACH, and once embedded, the scheme will be rolled out across the market.

The ACH has been applauded by industry commentator Dr Ros Altmann. "This is a very interesting initiative and I hope that many more providers will sign up so that it can deliver even better coverage of the market quickly.

"It should greatly improve efficiency of converting people's pension funds into pension income on retirement and that is something the market desperately needs.

"As the baby boomers come up for retirement, there will be increasing numbers of retirees and they need help in planning the best income for themselves in retirement."

- Pensions Age May 2009

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