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85% of annuity consumers receive high rate, says ABI

Association of British Insurers’ research shows that 85 per cent of single life level annuity customers receive a rate that is at least 95 per cent of the highest rate available.

The ABI says significant steps are being taken to encourage consumers to look around the market for good rates and says the industry is reducing the time it takes for annuity payments to begin.

ABI’s director of research and chief economist Rebecca Driver says: “In 2002, FSA research found that almost 80 per cent of joint life annuitants received a rate of between 85 and 95 per cent of the highest rate available in the market.

“Ours shows that almost 80 per cent of joint life annuities are sold at a rate above 95 per cent of the highest rate.”

Driver says the variety of annuity products available is valuable for consumers.
She adds: “Our goal is to ensure that they are better informed of the range of options they have and the key issues to consider when choosing an annuity.”


‘Midas investors will reap long-term rewards’

The Midas funds have suffered a setback in performance because their overseas prop-erty holdings have continued to trade at a discount to net asset value. High volatility has also affected the quoted value of some structured holdings and a preference for value stocks has hurt as these have been hit by the credit crunch.

Nationwide slices rates on fixed deals

Nationwide is cutting some of its fixed-rate loans by up to 0.3 per cent from May 16, including two-year fixed, two-year fixed without fee and two-year remortgage.

Greece: the sideshow continues

Artemis managers James Foster, Mark Page and Laurent Millet comment on the Greek deal, describing it as “just another fudge” getting in the way of bigger developments in China, the UK and the US. To read the full article click here.


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