Leading industry players are launching the first ‘national annuity day’ to raise awareness about these retirement products.
The campaign has been launched by Pension Potential, part of the Punter Southall Group and is supported by Aviva, L&G and Standard Life.
This campaign group says it wants to highlight the role annuities can play in delivering guaranteed lifelong income at a time when many DC retirees are concerned about running out of money. The campaign also has a dedicated website which offers a range of tools and resources to help consumers understand annuities, check current rates and plan their retirement, enabling them to make more informed decisions.
In recent years there has been a sustained increase in annuity sales, in part due to more favourable pricing of these products as a result of rising gilt yields. Figures from the ABI reached £7bn last year — a 34 per cent increase on the previous year.
Increasingly annuities offer flexibility to retirees with products offering inflation protection, joint-life cover, guarantee periods and value protection. More volatile economic conditions and increased longevity have also increased the appeal of annuities which offer a guaranteed income for life, shielding retirees from market movements.
The organises of this event say they hope to educate consumers about annuities, dispel myths and provide a platform for discussion about the future of retirement income. They are also calling on the wider industry to support the initiative, to help consumers make informed choices.
Pension Potential CEO Steve Butler says: “Many people approaching retirement have a very real fear that their savings might not last a lifetime. That’s why education is so important. People need clear, reliable information to make informed choices about their retirement income.
“National Annuity Day brings the industry together to address this challenge, helping consumers understand the role annuities can play in providing security and peace of mind. By working collectively, we can support people to make better decisions and feel confident about their financial future.”