London & Colonial has launched what it claims to be the first flexible open annuity, with a ‘cash out’ option.
The flexible open annuity has been launched in response to the Treasury’s announcement last month that it would extend the new pension freedoms to the annuity market from April 2015.
The firm said the ‘cash out’ aspect of the product is ‘future proofed’.
It also said the Flexible Open annuity policy contains the relevant clause required in order for customers to take advantage of the new freedoms when they come into effect.
Adam Wrench, head of product and business development at London & Colonial, said: “London & Colonial already has a drawdown contract that will allow clients to take advantage of the additional flexibility in April next year.
“Now with the launch of our flexible ‘cash out’ annuity clients will face a simple choice as to which contract will be most cost effective for them to use in order to access the new freedoms according to their circumstances.”
