Each month we ask leading industry figures to answer one big question: Recent research by Towers Watson showed a 24% increase in sales of enhanced annuities in 2009. What are the key factors contributing to this rise?
Peter Carter is head of product marketing at MetLife UK People want to maximise their retirement income, and enhanced annuities do exactly what the name says. Rates on conventional annuities have dropped by around 28% in the past 10 years due to a combination of increasing longevity and falling gilt yields. Faced with low conventional annuity rates it is not surprising that people are opting for enhanced annuities. Providers are helping by launching products into the growing market while advisers are doing a good job explaining the retirement income options to their clients. The ...
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