An­nu­ity sales start­ing to in­crease

Kentish Gazette Canterbury & District - East Kent Property - - MONEYLIVING -

The num­ber of re­tire­ment an­nu­ities be­ing bought by pen­sion savers has in­creased for the first time in three years, ac­cord­ing to the As­so­ci­a­tion of Bri­tish In­sur­ers.

Some £1.17 bil­lion worth of an­nu­ity sales took place in the third quar­ter of 2015, com­pared with £990 mil­lion worth of sales dur­ing the pre­vi­ous quar­ter, mark­ing the first quar­terly in­crease in an­nu­ity sales since 2012.

The new pen­sion free­doms in­tro­duced in April mean that pen­sion savers are no longer re­quired to buy an an­nu­ity, which gives a fixed in­come, when they come to re­tire.

An­nu­ities have been con­tro­ver­sial in re­cent years due to dis­ap­point­ing rates and con­cerns that peo­ple were not shop­ping around for the best deal.

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