Annuities the 'missing asset class' for sustainable retirement income

'Annuities reinvented' paper

Sophie King
clock • 3 min read

Retirees could benefit from more sustainable income and higher death benefits by including guaranteed income in the asset mix of their portfolios at retirement, according to research by Milliman.

In its Annuities reinvented paper, the consulting and actuarial firm addressed the questions of whether including annuities within the 'asset mix' could improve the chances of a retirement investment strategy continuing to provide an attractive retirement income over the retiree's lifetime and, if so, how this might impact any legacy after the retiree's death. The report noted: "For those enjoying a long life in retirement, our analysis revealed clear benefits to annuitising part of the retirement pot. The strategy resulted in a higher likelihood of maintaining a target annual income and...

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