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Mark Stopard, Head of Product Development at Partnership, commented on the Financial Services Compensation Scheme (FSCS) undertaking to protect the total value of peoples’ annuities from 3rd July 2015. |
“While no fixed annuity has ever failed and needed the support of the FSCS, this announcement is good news as it provides people with total security. Not only do annuities guarantee to provide people with an income for life but even if the worst should happen, they can be secure in the knowledge that they will still receive regular payments from their annuity. “Almost two-thirds (64%) of 45 to 70 year olds said that a ‘guarantee that they would receive an income for life’ is the most important aspect of a retirement product. Therefore, this announcement makes annuities even more attractive in the current uncertain environment if someone is looking to secure an income to cover necessities such as food and utilities in later life.” |
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