Why annuities 'rightly' have key role in clients' retirement income

Is it time to row back on pensions freedoms?

clock • 4 min read

Debate about pensions freedom has been ongoing since annuity rates took off. Here Nick Flynn looks at the issues and concludes the genie is well and truly out of the bottle...

Annuities are once again back in vogue. Following the significant shift in gilt yields, insurers are now able to pay much high levels of income which many customers are finding attractive. We've experienced the market highs and lows for the product, which was dealt a near fatal blow in 2014, with the announcement of the pension freedoms. A market that was once valued at near £14bn a year, shrank almost overnight to more like £3.4bn a year in the ensuing years, according to Association of British Insurers data. We also saw manufacturers exit the market while others consolidated to shor...

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