Following changes in the pension market, Prudential has opened a with profits annuity which accepts protected rights, and is the first provider to do so.
This will mean that customers no longer have to have separate funds for protected rights and non protected rights, they can have one fund and receive one income payment. Prudential believe that this product will be an appealing alternative to regular with-profits annuities and believes that other providers will follow in due course.
Our view
Investment linked annuities such as with-profits annuities are only for people who are willing to take an element of risk and understand those risks i.e. your pension income can fall as well as rise.