Annuity sales reach record high, shows recent study

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My Pension Expert looks at a recent study into how annuity sales have reached a record high

My Pension Expert
The amount of sales during this period has been described as a ‘landmark’ for the enhanced annuity market.

Recent research conducted by Towers Watson has revealed that enhanced annuity rates have soared and surpassed a billion pounds in the second quarter of this year. The figures showed that sales from the first half of the year were 1.99bn, which is an increase of 39% in comparison to the same time frame in 2011.

In total, sales figures hit 3bn in 2011, showing that this year will be considerably higher. The research considered data from nine annuity providers, which included Aviva, Just Retirement, Legal and General and MGM Advantage.

Significantly, the amount of sales during this period has been described as a ‘landmark’ for the enhanced annuity market by Andy Sanders of Towers Watson.

The research showed that over 20,000 consumers benefited from greater pension incomes because their lifestyle and medical conditions had been assessed. Even though enhanced annuities make up of only 20% of annuities sold, it is hoped that their popularity will continue to grow and will reach a wider range of the population.

Sanders also commented that 2013 might see a greater demand for enhanced annuities due to the gender-based legislation coming into affect later this year. Crucially, as retirees are trying to make their pensions go further, being assessed on lifestyle factors could secure the enhanced annuity’s spot in the annuity market.

My Pension Expert is a company of Diploma Qualified Independent Financial Advisors who specialise in the at retirement market.

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Samantha Green
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