“Based on current annuity rates, an amount of approximately £30,000 would purchase an annuity to provide an amount of £1,561 a year. Many people who are personally underwritten for health and lifestyle factors may benefit from a lower purchase price.”
Annuities may no longer be a default, but as Ormston remarks: “George Osborne didn’t say that no-one should ever buy an annuity again. He said that no-one will have to buy an annuity.
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“He didn’t say annuities [are] bad, don’t buy them. He introduced choice, and for us annuities will still be a very viable choice for many.”
Chloe Cheung is a features writer at FTAdviser
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