Pension reforms hit Scottish Widows profit

The results were published yesterday by parent company Lloyds Banking Group, which as a whole saw profits double year-on-year to £4.2 billion.

New laws have dramatically changed the way pension savings can now be accessed since their reform in April 2015, the major change being the ability of over 55s being able to assess the entirety of their pension pot as opposed to having to buy an annuity.

Acknowledging a difficult year for Widows, Lloyds’ 2016 accounts cited the “effect of recent reforms on activity within the pensions market”, which saw the amount taken in from the administration of annuities falling by 18 per cent last year, from £315 million to £258 million.

However, there was more positive news from Widows’ planning and retirement business which saw growth of 52 per cent to hit £204 million.