Annuity  

Annuity rates plunge as gilt yields fall

“Second; as an annuity purchased in a few years' time will be paid out for a shorter period than one purchased now, the annuity payable will be higher, but account needs to be taken of expenditure between now and the future annuity purchase. 

“Third; with increasing age comes an increased likelihood of conditions that may qualify for an impaired life annuity – which will, again, be higher.

“I think the market for temporary annuities is underdeveloped; this could be an acceptable product for people who want to combine certainty for a few years, with longer term investment flexibility.”

amy.austin@ft.com 

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