A change in law in 2012 which allowed people aged more than 60 with pension pots of less than £2000 to take the money as a one-off lump-sum and Phoenix offers this option to eligible customers with a maturing policy
As a pilot exercise, the company has now extended this option to a set of eligible customers who have annuities already in payment.
It is offering the opportunity to swap future payments for a one-off lump sum provided the cash equivalent value of the annuity does not exceed £2000.
