The Chinese may be celebrating the dawn of the Year of the Rooster this weekend, writes William Burrows, but could 2017 also see UK advisers and their clients celebrating the return of annuities as a viable alternative to pension drawdown?
If 2017 truly is to be the year of the annuity, several things need to happen. First of all, bond yields must rise significantly. Second, advisers and their clients need to be convinced there is a role for annuities now there is freedom and choice. In addition we need to have a better understanding of the various behavioural and technical factors that impact the decision whether to arrange an annuity or invest in drawdown. I cannot predict how bond yields will move as the realities of Brexit and Trumponomics work their way through the economic system, but one possible scenario is that in...
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