The changing face of annuities

Current economic turmoil has meant that less emphasis has been placed on longevity risk. However, understanding this risk and how to mitigate it is an area where an adviser can greatly add value. Longevity has been improving for many years and the rate of acceleration has increased recently. We saw a 20% improvement in the six years to 2002 when the same improvement took 68 years from 1901 to 1969. With hindsight, we have a good understanding of the drivers for this change: - Improvements in state education and establishment of the NHS; - Reduction in cigarette consumption; - Auster...