Sales of enhanced annuities soar - Annuities - News | moneyfacts.co.uk

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Sales of enhanced annuities soar

Sales of enhanced annuities soar

Category: Annuities

Updated: 19/02/2013
First Published: 19/02/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Volumes of enhanced annuity product sales have boomed in recent years, according to latest research, rising from £3,019 million in 2011 to £4.48 million 2012.

Demand for the products, which provide pensions to people whose medical conditions or lifestyles mean they have a lower than average life expectancy, have increased considerably over the past ten years.

Figures show that the total value of sales during 2002 stood at £651 million; however, this figure had more than doubled within six years to £1,444 million during 2008.

Over the course of 2011, total sales of enhanced annuities increased by 49%.

Mike Williams of Towers Watson, which conducted the research, said: "Despite the latest record level of sales by volume, enhanced annuities are still only around 20% of the total annuity policies sold.

"The current range of conditions and lifestyle factors that can lead to enhancements suggests a greater proportion of retiring consumers could benefit."

What next?

Find out how to get the best income in retirement
Learn about your annuity options

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

 
 
Close