Annuity market recognises need for 'radical rethink'

Jenna Towler
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A "radical rethink" is underway in the annuity market following the sweeping Budget changes but concerns over fund depletion remain, according to Equinity Paymaster.

An industry-wide poll from the pension service provider showed 75% of annuity player believe the products remain fit for purpose at retirement, but half were unsure if annuities will remain the product of choice for retirees. Some 80% agreed, a quarter strongly, that drawdown products should be a compulsory part of the open market option (OMO) debate, with 80% believing that drawdown should be given an equal profile to annuities as alternative retirement products. However, many respondents raised fears that an increased use of drawdown could result in pensioners exhausting their pensi...

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