Standard Life hits out over third way investments

Wed, 10 Oct 2007

Standard Life has come out in criticism of the government over its decision to block third way annuity investment products.

According to the investment specialist, such services enable Britons to reap the benefits of future investment returns while still enjoying a guaranteed income .

And John Lawson, head of pensions policy at Standard Life, said that the government's decision to remove these investment options is based on the "misconception" that they only appeal to a small minority of consumers.

"In the US around 80 per cent of people reaching retirement use these products rather than conventional annuities," he explained, describing the government's view of the investment vehicles as "incorrect".

"'The UK government wants to see itself as an innovative leader in financial markets but this particular decision lacks foresight," he said.

Standard Life's comments were made in the wake of the pre-Budget report, made by the newly-installed chancellor Alistair Darling.

Mr Darling came under fire from a number of organisations, with Aegon criticising the Treasury for not changing tax legislation regarding annuities.
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