Cheap income guarantees cut through annuity stereotype

In one example in the insurer's research, the margin between no guarantee and a 20-year guarantee is just a 4% reduction in annual income, with a £100,000 annuity securing an income of £6,532 vs £6,270, a reduction of £262 a year. The 20-year guarantee will return income of at least £125,400, irrespective of what happens to the customer. Retirement income director Nick Flynn explained: "As annuity rates have improved so has the cost of the death benefits available. No longer do clients need to trade off a big drop in income to provide valuable guarantees. The reduction in income from ...