Gaining traction

The variable annuity market achieved phenomenal growth in the UK in 2008, with sales of the products exceeding £1 billion, more than double those of 2007, according to Watson Wyatt. Known as living benefits, the unit linked investment products, which provide a guaranteed income, as well as potential for growth, are starting to gain significant traction in the UK. Already a mainstream retirement solution in the US and Japan, living benefits are now being considered alongside more traditional products by many IFAs, with premiums growing from £539 million in 2007 to £1,153 million last yea...