Pensions  

L&G set to top £4.1bn annuity target despite reforms

The chief executive of L&G Investment Management also revealed the company is developing a low-cost income drawdown product with a range of options for customers to choose their level of risk and how much they want to be guaranteed.

The firm’s six-page investment management report revealed that Cofunds assets under administration were up by 25 per cent in the first quarter of 2014 to £65.6bn, with LGIM’s total assets under management up by 5 per cent to £462.6bn, and international AUM up by 21 per cent to £63.2bn.

Mr Zinkula said: “LGIM has made a good start to the year with net inflows of £3.8bn and total assets under management rising to £463bn. In the UK we are also making good progress in growing our defined contribution and retail businesses.”

Article continues after advert

Lorreine Kennedy, head of care fee advice at the St Albans-based Carematters, said: “Annuities definitely have a place – a lot of people are more concerned with having an income for life over a lump sum.”