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.”

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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.”