ABI sees little consumer understanding of annuities

Sales of annuities hit 340,000 in 2003, up from 120,000 a decade earlier, reflecting demographic change and the shift from final salary to money purchase pensions, a report commissioned by the Association of British Insurers has found. The marke is predicted to jump to £18.1bn by 2012, from £7.2bn in 2002. The the report also says it has found a low sense of ‘consumer awareness’ on what happens to their pensions after retirement, as well as a lack of knowledge about variety of annuities available - or indeed how they work in the broadest sense. The ABI has again urged the governme...