L&G predicts annuity sales to shrink by 75%

Legal & General, one of the country's largest annuity providers, has said it expects to see revenues from annuity products fall by three quarters by the end of 2015 following a sweeping reform of the sector.

Speaking after last week's Budget - which outlined a major overhaul of the annuities market, effectively removing the requirement to ever purchase one - L&G's group CEO told a conference the group is forcasting a huge slide in revenues from annuities over the next two years. Nigel Wilson told delegates at a Morgan Stanley investor conference the group is forecasting the £11.9bn-a year market in individual annuities to fall to just £2.8bn by the end of 2015. Wilson said: "We do expect individual annuity sales to go down, including for internal vestings, which have been the subject of r...