This month, Vince Smith-Hughes talks to Helen Morrissey about the role asset-backed annuities can play in a retirement planning portfolio
What are the key challenges facing retirees and how are these they being met by traditional retirement products? The key challenges we face will be the effect of longevity and inflation. About a third of people who retire today at 65 will get to their 90th birthday and the average longevity for women today at 65 is 20 years. We are also seeing inflation making a comeback. The latest RPI is 4.8%, but we know inflation for pensioners is higher. It has been estimated that in the 65-69 age group, this can add an extra 3.3% onto RPI, so you are looking at pensioner inflation of more t...
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