5th October 2018
The Pension Freedom Effect
It is a well- known fact that the annuity market has suffered greatly since the Pensions Freedom announcement in 2014.
In the last quarter of 2016 annuity sales fell to its lowest according to the FCA.
Two years later and we definitely believe that we are starting to see this recovering and that the demand for annuities is increasing and will be for the coming years.
As greater number of people retire with Defined Contribution pots the need for a guaranteed income as part of their decumulation phase in retirement will grow. Improving gilt yields, higher interest rates, growing DC pots retirees, concern over market volatility and an ageing population all drive the expansion of the annuity market.
Annuities will not be the answer for every client but certainly can offer an underpin to cautious clients’ income portfolios.
Do you agree?
We would like to hear your thoughts on the changes introduced four years ago, how they impacted your business and how you choose annuities today.
The anonymous survey will take just 5-10 minutes of your time and we will share the results with the FCA, the TSC and of course yourselves and our partners who can use the responses to enhance their service offering to you.
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