View more on these topics

IFAs expect further falls in annuity rates

Many IFAs are expecting annuity rates to fall over the next 12 months, with 80 per cent expecting a 2.5 per cent drop, according to Key Retirement Solutions.

A survey of 50 IFAs showed that 15 per cent were even more pessimistic, predicting annuity rates would fall by 5 per cent or more while just 5 per cent of advisers expected rates to stay the same.

KRS says falling annuity rates and rising house prices mean retired homeowners should look to access income through the huge wealth tied up in their property.

The IFA estimates that retired homeowners have seen the equity in their homes increase by 13 per cent to £688bn from £611bn in the last year.

The equity-release specialist is publishing a free consumer guide that explains the types of home-income plans and equity-release products on the market.

Managing director Colin Taylor says: “Many pensioners have had to endure annuity rates falling by 12 per cent last year and they could fall further as life companies continue to adjust to increased life expectancy. This, coupled with poor stockmarket returns, means that many are becoming increasingly cash-poor but equity-rich as the value of their homes increases.”

Recommended

Sainsbury stocks up on Sandler

Sainsbury&#39s Bank is using the Sandler product proposals as a springboard to enter the investment market with the launch of two equity-based Isas.The bank, which is backed by the Bank of Scotland, says supermarkets are well placed to achieve Sandler&#39s goals of reaching consumers who are not saving because they feel disconnected from the financial […]

Outside edge

The pointers for the housing market for the next year are far from clear. Each week, conflicting evidence emerges about house prices and, to a lesser extent, volumes in the market. Although the two factors are inevitably linked, too little analysis is carried out into the real linkage, as it is not as simple as […]

Morgan Stanley – Morgan Stanley FTSE Optimiser

Friday, 28 February 2003 Type: Guaranteed equity bond Aim: Income or growth linked to the performance of FTSE 100 indexMinimum-maximum investment: Lump sum £5,000-£1m, £7,000 Isa Term: Five years three months Guarantee: Options 1 and 3 – Original capital returned in full regardless of performance in index. Options 2 and 4 – Original capital returned […]

Out of context

•”London, as you know, is a town in Canada.” – AMP spokesman Stephen Hoffman brings an international perspective.•”We do have a computer in the office but it is steam-driven. As far as we are concerned, it is cutting-edge stuff.” – Pensions & Investment Management principal Phil Moore.•”Out Of Context is the zenith of my career […]

To be and not to be – Multi asset investing with conviction

At Pictet Asset Management we believe active management of asset allocation is the most important generator of returns. What is not to be in our portfolio is just as important as what is to be because good performance is determined as much by the assets you avoid as by those you hold. The FP Pictet Multi Asset Portfolio managers are not wedded to any particular […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com