Chancellor George Osborne's radical changes to pensions are expected to usher in a new era of invention in the defined contribution (DC) space. While some fund managers are giving existing products a new spin, others are looking to assemble completely different solutions, finds Lynn Strongin Dodds...
Industry estimates suggest the surprise pension changes announced back in March will reduce the size of the UK's £12bn-a-year annuity market by between 70% and 90%. A new survey by State Street - which canvassed 57 senior insurance executives and 70 investment advisers - found that almost half of the former and 56% of the latter expect the changes will lead to more innovation in the industry, while 70% and 50% respectively saw retirement, investment and income products with capital and income guarantees being among the most popular options. 'U' or 'J' shaped annuities where income can...
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