Could the annuity revival mean retirement advice decline?

Recent shift to annuities could hit advice business status quo

Julia Bahr
clock • 3 min read

Julia Bahr looks at the return of annuities, the ‘one and done’ option for retirement income. Could drawdown, and therefore, the need for ongoing retirement income advice be on the wane?

Annuities, the once all but forgotten retirement income option, are back on the agenda with both clients and advisers sitting up and taking notice of vastly improved rates. Annuity rates have risen by 52% last year to a 14-year high in October 2022 due to soaring gilt yields. Last year saw a 44% increase in average benchmark rates between 1 January and 1 December, according to research from Canada Life. Here PA speaks to advisers and industry experts about the potential impact an annuity renaissance could have on their industry. Rowley Turton Chartered financial planner Scott Galla...

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

Rising annuity rates result in DB transfer compensation cuts

Rising annuity rates result in DB transfer compensation cuts

Rate rises mean people can secure a higher retirement income

Holly Roach
clock 29 August 2023 • 1 min read
Comfortable retirement target £250,000 higher for single people

Comfortable retirement target £250,000 higher for single people

Single pensioners face ‘uphill hike’ compared to couples

Holly Roach
clock 15 August 2023 • 1 min read
Collective DC decumulation appeals to a third of future retirees

Collective DC decumulation appeals to a third of future retirees

When compared to annuity and drawdown options

Jasmine Urquhart
clock 14 August 2023 • 2 min read