Annuities Flourish

Annuities Flourish

MetLife Europe research has shown, the stock market upset is boosting the popularity of cash investments, with-profits annuities and impaired life annuities.  Two-thirds of IFAs said the volatility has spurred their clients into changing the way they plan for their retirement.  Cash is the investment of choice for clients of a third of IFAs, and 21 per cent said guaranteed pension products are now top of the list for clients.  Nearly half of IFAs say clients are increasingly asking for advice on alternatives to traditional and drawdown annuities, included 16 per cent who say clients ask primarily about pension products with unit-linked guarantees or variable annuities.

Norwich Union commands the largest share of the general annuities market.  In quarter one this year it accumulated £711.1m of income.  Canada Life achieved the second highest income in quarter one of £314m.  The survey also published rates from 11 providers and found that LV and Just Retirement offered some of the best rates.  Out of the 24 categories, AXA held the worst rates in 15 of them.

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