A pensions firm will embark on a £14m cost cutting programme after demand for annuities slumped by 50% following the Budget.
Just Retirement will save the money through a restructuring of its business, it announced today.
The changes will mean a one off cost of £5m in the current financial year.
The Budget had a "materially negative impact" on the last two weeks
of the quarter with many retirees deferring their annuity decision, said the company.
However, individual annuity sales for the whole of Q3 2013/14 were up 34% at £287.5m.
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Rodney Cook, chief executive of Just Retirement, said: "Although operating conditions have become much tougher since the Budget, with sales at around half of pre-Budget levels, we are rapidly adapting our model to the new environment.
"Our flexibility is exemplified by our recent launch of a one year fixed term annuity.
"This will help customers retiring now to make use of the new rules when they are introduced next year, and further product launches will be announced in due course.
"We expect distribution shifts to give us access to a growing proportion of retirees, particularly if the Government's guidance concept is successfully implemented."
He added: "Financial intermediaries are still rightly advising many of their clients that a guaranteed income for life is often the best retirement solution.
"Our underwriting skills mean we offer them competitive terms, whilst protecting against the risk of outliving their money."