As the annuity market continues to evolve, Jon Scannell, Head of Annuity Distribution at Standard Life, shares with Professional Paraplanner how the provider is helping advisers and paraplanners navigate a changing retirement income landscape.
Higher rates, increased regulatory focus and changing retirement needs have all combined to create renewed interest in guaranteed income solutions.
Yet according to Standard Life’s Jon Scannell, one of the biggest challenges facing the market is not demand – it’s understanding.
Many advice professionals have limited experience of annuities following a decade in which drawdown dominated retirement planning.
That educational challenge has become a key area of focus for Standard Life.
Building confidence through education
Since launching its Pension Annuity in 2023 and its guaranteed fixed income proposition a year later, Standard Life has invested heavily in supporting firms navigating an evolving retirement landscape.
Rather than assuming advisers and paraplanners already understand annuities, the provider has actively encouraged questions and conversations.
Jon commented: “We’re massive advocates of advisers and paraplanners calling in and asking questions.”
Dedicated support teams form a central part of that strategy
For a market where many professionals are encountering annuities for the first time in years, access to specialist support can be invaluable.
Questions range from underwriting and death benefits to fixed term annuity flexibility and retirement income design.
For paraplanners responsible for researching recommendations and preparing suitability reports, that access can save valuable time and improve confidence in the advice process.
Tackling misconceptions
Jon told us that there is a recurring theme in their discussions with firms and clear misunderstandings.
Many professionals continue to assume fixed term annuities require underwriting.
Others remain unaware of surrender options, withdrawal features or the range of death benefits available through modern annuity products.
Education therefore remains central to market development.
This is particularly relevant for paraplanners, who are often responsible for conducting the detailed research behind recommendations.
By improving understanding at the technical stage, firms can ensure suitable options are not discounted before they ever reach the client discussion.
Jon says Standard Life is increasingly being approached by firms looking to improve their broader understanding of retirement income planning rather than simply discussing product features.
That demonstrates how much the market has evolved.
Service as a differentiator
While rates understandably attract attention, Standard Life believes service remains a key differentiator.
Interestingly, Jon says some firms choose the provider because of the support available rather than simply because it offers the highest income.
“We often get advisers coming to us because we answer the phone really quickly,” Jon said to Professional Paraplanner.
That may sound simple, but in a market where confidence and responsiveness matter, service remains a powerful differentiator.
For paraplanners working to deadlines and managing multiple client cases, having quick access to support can make a meaningful difference to both efficiency and client outcomes.
Driving digital change
Technology is another major area of investment.
The annuity market has historically lagged behind other areas of financial services when it comes to digitisation, largely because investment slowed following Pension Freedoms. That is now changing.
Standard Life’s digital application journey is available through major industry portals, including Iress, Assureweb and iPipeline.
Currently, around 16% of the provider’s annuity business is submitted digitally, although Jon expects that figure to grow significantly.
“We need to make that journey as slick as possible,” he said.
Future developments are focused on streamlining processes, reducing friction points and improving usability throughout the adviser journey.
The provider is also working alongside industry partners and other providers to encourage greater consistency across the market, helping advisers and paraplanners navigate annuity business more efficiently.
Preparing for a growing market
Standard Life believes demand for annuities is likely to continue growing.
Higher rates remain attractive, while upcoming inheritance tax changes affecting pensions are prompting fresh discussions around retirement and estate planning.
The provider has already seen average case sizes increase and is experiencing growing interest from wealthier clients who are considering guaranteed income solutions as part of broader financial plans.
At the same time, retirement itself is becoming more complex, requiring a broader range of options and more nuanced conversations.
For Standard Life, supporting advisers and paraplanners through those changes is about more than launching products.
It is about building understanding, improving accessibility and ensuring guaranteed income solutions can take their place within modern retirement planning.
As Jon highlighted to us, today’s retirement landscape is no longer defined by a single solution.
Helping firms understand all of the available options may ultimately prove just as important as the products themselves.
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