18 August 2010
Research from Towers Watson has shown an increase in the sales
of variable annuities. Sales in the first half of 2010 totalled
£444.7 million. This was a significant increase on the
£331.9 million sales figure from the second half of 2009.
Sales of variable annuities were only £538.7 million in 2007
but have grown to £1,045.4 million in 2009.
Andy Sanders, a senior consultant at the firm, said:
"It is encouraging that there has been a bounce in sales
compared to the second half of 2009. However those sales were much
reduced relative to the first half of 2009, prompted by
product redesigns and the exit of the Hartford from the market
place as a result of the impact of the financial
crisis. With first and second quarter sales in
2010 so similar (and below comparable levels of 2009),
consumers and advisers may need reminding of the virtues of 'third
way' propositions like variable annuities as alternatives to
conventional annuities and income drawdown."
The full press release from Towers Watson can be found here:
Towers Watson Press Release
We have an overview on these types of plan here on our
webpage:
Guaranteed Income Drawdown
Plans
