In search of flexibility

Buying an annuity used to be a once in a lifetime decision. An individual saved into a pension and on retirement converted the fund into a guaranteed income for the rest of their lives via a lifetime annuity. The lifetime annuity concept may be relatively simple, but as people live longer, the inflexibility of a product that locks them into receiving a set income for the rest of their life looks set to become less attractive than it once was. Furthermore, there will be many ordinary individuals who do not like the idea of losing their pension fund if they die early, or the fact that the a...