Variable annuities 'not suited' to in-retirement lifestyle

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Variable annuities are more suited to older people who are still working, rather than those in retirement, according to Just Retirement.

Nigel Barlow, head of retirement income solutions at Just Retirement, believes the products have been wrongly marketed at the post-retirement demographic. Variable annuities, which offer a guarantee along with the possibility of income growth should investment markets perform well, have been marketed in the UK for several years as an alternative to traditional annuities and income drawdown. However, Barlow believes the products are more beneficial for people who are approaching retirement, rather than those who have already given up work. "If someone decides to work past the normal...

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