The changing face of retirement

Annuities were designed at a time when retirees typically stopped work on a given date and were mostly looking for a predictable amount of income, guaranteed to be paid for the annuititant's life.

The problem is that this ideal is becoming more expensive to deliver, at least for younger annuitants.

Delaying annuity purchase doesn't mean a client can't access retirement income. They could choose an alternative solution, such as income drawdown, to provide their income in the short to medium term and purchase an annuity later on.

There is no guarantee of course that annuity rates will improve but the client will be slightly older which would be in their favour.