Helen Morrissey assesses the difficulties currently being faced by the variable annuity market and asks how it will develop going forward
Variable annuities have endured a turbulent time since they were first launched into the UK at-retirement market more than two years ago. While the initial concept of offering the opportunity to gain market upside while benefiting from guarantees seems sound, these products have also been dogged by criticism from those who dub the products as expensive and overly complicated. The majority of variable annuity providers were US players and it was hoped that the entrance of a big UK player would do much to improve competition and really open up the UK variable annuity market on a grand scale. ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes