Legal & General (L&G) has partnered with HSBC UK to allow customers to directly explore annuities as part of their retirement income options.

The move means that through HSBC UK’s website, customers can now for the first time access the L&G annuity service and apply directly for an annuity through L&G.

Demand for annuities has grown in recent years and last year L&G achieved record sales of more than £2bn.

L&G suggested that strong market conditions have supported this growth, in addition to increasing awareness of the other important benefits a guaranteed income can deliver.

The partnership between L&G and HSBC UK builds on an existing collaboration between both brands, as HSBC UK customers already have access to L&G’s intermediated product suite of life insurance, income protection and critical illness cover.

“Our continued collaboration with HSBC UK enables us to give more customers control over their retirement planning,” commented L&G CEO, retail, Laura Mason.

“We’re proud to be the leading annuities provider in the open market – a clear reflection of the strength of our propositions and the investments we’ve made in digital innovation to improve customer experience.

“Looking ahead, we expect substantial growth in this market over the next decade as the first waves of ‘defined contributions-only’ customers begin to retire and explore the most effective ways to manage their retirement funds.”

HSBC UK head of wealth, Xian Chan, added: “We are committed to offering our customers a range of retirement solutions that meet their needs.

"Offering an annuity product through our partnership with L&G meets a genuine customer need for those that are looking for long-term stability and a guaranteed income for their retirement.”

This article originally appeared in our sister publication MoneyAge.

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