The Retail Distribution Review (RDR) saw sales of enhanced annuities by specialist provider Just Retirement drop by more than a quarter in the first three months of the year, it revealed today.

Sales for the year to March were £230.6m, down £83m from the same period last year.

Providers have long argued that banning commission-based payments for advised sales of enhanced annuities could reduce demand as customers shun fee-based advice. Just Retirement said the slowdown was “expected”, although it predicted sales would return to “normalised levels” by mid-year.

Despite the fall, sales for the first three quarters of Just Retirement’s financial year, which runs to the end of June, were up 20 per cent year-on-year. Its equity release business also grew, with sales up from £206.3m to £216.3m.

“Just Retirement maintained a leading position in the individually underwritten annuity market with annuity sales of £230.6m during the quarter," Just Retirement chief executive officer Rodney Cook said. "Feedback we have received from intermediaries suggests the reduction in the third quarter is representative of the total intermediated market. Annuity sales for the nine month period to March were 23.8 per cent higher at £1,031m.”

The third quarter results come as the company announces its move into the long-term care market, with “an immediate needs annuity solution” to be launched in the next few months, according to Cook.

Share Story: