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...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Income

Comparisons for annuities quotes grow by 69% in Q4 2022

Comparisons for annuities quotes grow by 69% in Q4 2022

Increased number of scenarios for quotes run by brokers

Ayesha Venkataraman
clock 16 January 2023 • 3 min read
Annuities continue to make a comeback with rates up 44%

Annuities continue to make a comeback with rates up 44%

New figures from Canada Life show a 14-year high was reached in October

Kathleen Gallagher
clock 12 December 2022 • 2 min read
Liz Truss and Kwasi Kwarteng discuss the Mini Budget. Rory Arnold / No 10 Downing Street

Was 'Trussonomics' actually bad for investors?

'It is fair to say that it did not go according to plan'

Chet Velani
clock 06 December 2022 • 5 min read