Fixed term annuities can benefit clients in the right situation and should be given full consideration by advisers dealing with clients approaching retirement, according to a report.
Retirement specialist LV= commissioned a report on the fixed term annuity market amid industry concerns about their suitability. The findings of the report indicate that a modest increase in gilt yields could make a fixed term annuity a worthwhile strategy for many more retirees. It also found that if gilt yields returned close to the average yield seen between 1994 and 2012, a fixed term annuity "would be appropriate for most clients". It added if a client has a spouse that is in very poor health, they could also benefit from not locking into a lifetime annuity rate at outset if the ...
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