Enhanced annuities: Looking to the future

The retirement market has changed dramatically over the past ten years. There are growing numbers of people reaching retirement with defined contribution pension pots which need to be converted into a retirement income. Within this growing market, enhanced annuities have developed from being a niche curiosity to a mainstream product. Back in 2003 - the first year the Association of British Insurers (ABI) kept separate data - less than 2.5% of total annuity sales were enhanced annuities. At this point, they tended to be ‘good news, bad news' solutions, with people getting a higher i...