LONDON Fund supermarket Hargreaves Lansdown said on Tuesday it would not offer a broking facility for investors looking to sell their annuity, or income for life, when a government scheme launches in April 2017.
The plan is one of a range of steps taken by the government to try and help investors get the best deal with their retirement savings, which included the removal of an obligation to buy an annuity at retirement.
Hargreaves said in a statement that it had made the decision after analysing the market and potential risks to consumers.
"For a small number of investors, selling an existing annuity income in exchange for a lump sum may make sense," said Tom McPhail, head of retirement policy.
"However ever since this proposal was first made, we have been concerned that for many investors, it is likely to be a poor decision. We have therefore made the decision not to enter the secondary annuity market at this time."
McPhail said the firm was reviewing whether to offer an advisory service to investors who may be considering selling their annuity and would make a further announcement at a later date.
(Reporting by Simon Jessop; editing by Carolyn Cohn)