Pensions - Articles - MGM Advantage comments on ILC annuity report

 Commenting on the report, ‘Whither UK annuities?’, published by the International Longevity Centre UK (ILC-UK), Andrew Tully, pensions technical director, MGM Advantage said:

 ‘This paper shows people who have shopped around in the open market and have then gone on to purchase an annuity, especially where health and lifestyle is taken into account, are receiving good value. Unfortunately we have witnessed far too many people staying with the company they saved with and this is where the bulk of the problems arise. If this behaviour continues in the new world then all the additional flexibility being introduced will have failed to deliver better customer outcomes.

 ‘The recent changes announced in the Budget have created uncertainty in the market. Many people are still looking for a high level of guaranteed sustainable income in retirement, and good value annuities will continue to play a key role in delivering good customer outcomes. But there is also an opportunity for providers to develop new solutions that people will want to buy.’