15th December 2016

Just Retirement: Income that lasts a lifetime, what’s that worth?

The concept of value when applied to guaranteed income for life (provided by an annuity) inevitably tends to focus on the amount of income that is offered in exchange for the retiree’s pension pot. This rate of return is usually compared against products in an investment context, but is this misleading? Does the amount of income paid to a retiree from a guaranteed income for life (GIfL) directly dictate whether it represents ‘good value’?

Of course, achieving the most amount of income for capital with a GIfL is important. However there is a deeper question on how this value is quantified, and that relates to whether they should be viewed as an investment, or as an insurance product.

Just Retirement’s latest THINK article looks at how a guaranteed income for life differs from investment solutions like drawdown, along with the article also covering:

• Why longevity is important and should form part of the consideration of value for a GIfL.
• Using the pooled risk approach in determining longevity.

Read the full article today

If you have any questions, please contact your dedicated account manager on their usual number, call our support team on 0345 302 2287 or email support@justretirement.com.

Just Retirement Limited. Registered Office: Vale House, Roebuck Close, Bancroft Road, Reigate, Surrey RH2 7RU. www.justretirement.com. Registered in England Number 05017193. Please note your call may be monitored and recorded, and call charges may apply. Lines are open 8:30am to 5:30pm, Monday to Friday.  

Retirement