It is really good to be able to give some good news in the annuity world for a change, at a time when all you read is that annuity rates are at an all time low and still falling, for once some news about an increase. The Prudential, one of the UK insurance companies that sell annuities and also asset-backed with-profit annuities have reported that they are increasing the income on their asset-backed with profits annuity the income choice annuity.
Policyholders will see their retirement income increase by 1.5% as a result of the reduction in providing guarantees.
Vince Smith-Hughes, head of pensions development at Prudential, said: “The cost of providing the guarantees underpinning our Income Choice Annuity has fallen so we are able to pass that on to customers.
“The Income Choice Annuity has proven to be very popular with clients and advisers since launch and we are committed to ensuring it remains as competitive as possible in the current market.”
We at annuitysupermarket.com asked IFA Adam Benson how this would be seen by consumers, Adam said, “This is excellent news for consumers and especially at a time when we have seen lifetime annuity rates fall. Asset-backed annuities and perhaps those linked to with-profit funds will become more popular over the next decade as consumers look for more flexibility with their retirement income.”

