Enhanced annuity sales fell by 29% in the first quarter of 2016 compared to the final three months of last year, signalling the sector is still 'in flux' following major pension reforms, a consultant has said.
Willis Towers Watson said the last three months of 2015 saw enhanced annuity sales reach £357.4m. However, quarterly premiums dropped by almost a third in the first quarter of this year to £254.2m. The consultant explained declining sales of enhanced annuities, to people with reduced life expectancy, first started in 2012 and have been affected since pension freedom was first announced in 2014. Pension freedom opened up the retirement income market, giving people the right to access their retirement pots from age 55 without the need to buy an annuity. Annuity sales tumbled in the w...
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