IFA interest grows for low cost annuity service

The retirement income service launched by Annuity Clearing House (ACH) in June has had a positive reaction from advisers, chairman Peter Quinton says.

In its first quarter, 900 IFAs have signed up to use the retirement service, which allows advisers to introduce clients who are looking for annuities but cannot afford full advice.

"The reaction from advisers and retirees has been excellent," says Quinton.

"They see it as a ‘win-win' opportunity to help the client and make easy profit without taking on any work or compliance risk themselves.

"By introducing clients to ACH, IFAs significantly reduce their workload and earn good money while knowing their client will be dealt with quickly and efficiently by experienced staff, freeing up the IFAs' time so they can concentrate on advice."

Annuities from Prudential, Legal & General, MGM Advantage and Canada Life are available via ACH, and IFAs can earn introducer fees of £1,000 for £100,000 standard annuity purchases.