Enhanced annuity sales rose by almost a third in 2008, with strong growth expected to continue through the recession, according to Watson Wyatt.
The specialist annuity products, designed to provide a better retirement income for those in poor health, now account for one in four annuities sold via the open market option (OMO). Watson Wyatt's research found enhanced annuity sales grew to £1.44bn last year, a rise of 31% compared with 2007, and up 240% since 2000. In 2008, 26.7% of annuities bought using the OMO were enhanced, the firm's research shows, and accounted for 12.7% of total annuity sales. Senior consultant Andy Sanders expects sales of the product to continue growing, and believes enhanced annuities will claim an even b...
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