IFAs anticipate further annuity rate drop

The research found one in four IFAs expect rates to decline by between 7.5% and 10% by 2015, and one in five think the drop will be over 10%. "There is a lot of pressure on annuity rates at the moment, including increased life expectancy and Solvency II, which will require insurers to keep back more capital," says Aston Goodey, sales and marketing director at MGM Advantage. "If rates do fall, conventional annuities will become less attractive and a greater focus will be placed on asset-backed annuities," he adds. The survey found 91% of IFAs expect the asset-backed annuity market t...