IFAs are set for a boost as demand for investment-linked annuities is predicted to surge this year by the Annuity Bureau.
By the end of 2000 it expects investment and with-profit linked annuities to make up 20 per cent of the annuity market, or £1.5bn, from five per cent in 1998.
The specialist IFA attributes the increased demand to ongoing relatively low standard annuity rates and to retirees being given more investment choice.
Managing director Peter Quinton says: “Investment-linked annuities need to be sold on advice because of the increasing number of products on the market. Advisers are also needed to explain the 'reasons why' when comparing the products to standard annuities which are more well protected and less risky.”