The head of product and business development at London & Colonial has warned that locking into today’s fixed-term annuity rates may prove unwise if they rise in the future or a client’s health deteriorates.
He said: “We would always recommend that, in addition to the open market option, advisers should seriously consider the use of reviewable annuities.
“These can be reassessed on a regular basis to enable the annuitant to benefit from any age-related rate increases, or future health issues”.
Adviser view
Steven Pyne, partner at London-based Holden & Partners, said: “It’s never been more important to give the widest possible choice of annuities in case any clients have underlying conditions. An enhanced annuity always provides a better rate of return.”
