Advising an ageing population (3): What role will annuities play in the future?

Guaranteed income

clock • 8 min read

In the final feature of a three-part series on the growing population of over-85s, PA assesses whether the dwindling annuity market could be in line for a resurgence, but other economic factors are also at play…

The UK's over-85 population is set to almost double over the coming 25 years, say the latest Office for National Statistics figures, raising concerns over how the social care system will be able to handle the pressure, and how it can be properly financed by pensioners. As the pensions industry attempts to address these issues decades ahead of time, some experts say the annuity market could be in line for a resurgence. Typically, annuity rates move in line with gilt yields, which have been at historic lows in more recent years, says Emma Watkins, managing director, retirement and longstan...

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