November 22
Who said annuities were dead?

Just when you thought there was no way back for annuities with the boom in pension pot cash-ins (“Annuity sales continue to plunge”,  BBC News, see here), and that young people would never be interested in pensions ever again (“Worrying lack of understanding of workplace pensions found among millennials”, The Actuary, see here), the National Lottery operator Camelot is riding in to the rescue with news that annuity-style gaming could be introduced to entice youngsters to play (see here).

Whilst annuity rates have risen some 15% since hitting an all time low in the summer of 2016 – when a pot of £100,000 would have bought a level income for life of just £4,700 per annum – it is little wonder that full advantage is being taken by retirees of the flexibilities the pension freedoms permit: since 2015 84% of those accessing a pension pot of less than £10,000 took the whole lot in cash.
Looking at these numbers, Camelot’s intentions may well appeal as much to the older generations as millennials!

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