A whole new world

Annuities have always been a mainstay of the UK retirement market with the market generating £11 billion in 2007. However, they are often criticised as representing poor value for money and lacking the flexibility of income drawdown. Yet recent developments in annuity underwriting processes coupled with the extreme investment volatility means that annuities could be moving into a whole new phase of development and growth. The credit crunch has hit investment markets hard over the past year providing food for thought for would-be retirees. They may have seen their pension fund drop in valu...