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

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...