Advisers turn to asset-backed annuities as rates plunge

A study conducted by MGM Advantage suggests more than 90% of IFAs expect the market for asset-backed annuities to grow over the next five years. The research, which collected the views of more than 40 independent advisers, also found 82% expect conventional annuity rates to fall during the same period. Last month, ten-year gilt yields hit an all-time low after the Bank of England warned of a double-dip recession, dragging annuity rates down with them. Between July and August, two-year annuity incomes slumped on average from £19,863 to £19,344 for a 30-year-old and from £10,824 to £...