Rate Expectations

In 2006, 400,000 annuity policies were set up, amounting to £9bn: predictions say this could rise to £14bn by 2012



It was in December 2006 that the Annuities Report was written stating that annuities were fairly priced. The Government is now worried about the different rates charged between providers. The Government feels that people are not given the correct information to enable them to choose the right annuity.

There has been a review set up to investigate and to see why so few people choose the open market option.

It is wondered how this will actually take place because obviously all lenders have different criteria.

The review is likely to see what information people receive as they near retirement. It is considered that although there are plenty of sources of information about annuities many people to not use or read any of them.

The important thing for people to understand is that they probably need professional advice in choosing the correct annuity. It would be useful for all if the review were to take in the whole retirement income market whilst doing its research.