Tag Archives: annuity

Smooth operators: the case for the non-guaranteed investment-based smooth income annuity

Posted on April 21, 2024 by henry tapper

Per UK Linnemann — First published in the Actuary Thursday 7th March 2024 — 8 min read The smooth income annuity was born in Per UK Linnemann’s homeland, Denmark. Here, he advocates the non-guaranteed investment-based variety. In a 2007 piece … Continue reading →

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Three lessons from the FCA’s retirement income market data

Posted on April 17, 2024 by henry tapper

My analysis of this data leads me to three behavioural insights People are concerned about “net cash” – not “gross before tax” People want control and ownership People prioritise today’s cashflow needs over a wage for life The data published … Continue reading →

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The tricky thing about disruption.

Posted on March 16, 2024 by henry tapper

The tricky thing about disruption is that it makes for so many awkward conversations. This week , we’ve been struggling to get some currency behind the concept of a Pension SuperHaven. It is a pension scheme that offers those who … Continue reading →

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70% of us don’t take advice when buying annuities – are we mugs?

Posted on February 17, 2024 by henry tapper

  ABI data shows that 2023 was a good year for annuity sales which totalled £5.2 billion. More people buy annuity rates when  interest rates are rising. Annuities fulfil a need  people have  to secure a reliable retirement income for … Continue reading →

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Is now the time to buy an annuity?

Posted on February 4, 2024 by henry tapper

Coincidentally, the FT published two articles this weekend on annuities. The first, which I won’t dwell on, is by Jo Cumbo and Ian Smith and looks at the increasing amounts of “buy-out” risk being sent overseas (mainly Bermuda) by insurers, … Continue reading →

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Will trustees rely on fiduciary duty to deliver DC pensions?

Posted on November 23, 2023 by henry tapper

  We intend to rely on the trustee’s fiduciary duty to act in the members best interests when developing the suite of products and services. However, we will keep this under review and may introduce further requirements separate to the … Continue reading →

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Are bonds “productive finance”?

Posted on November 2, 2023 by henry tapper

A little group of us are having a  vigorous debate about the definition of productive finance and what falls within its scope. I have taken as my starting point, the definition  from Barry Kenneth – CIO  at  the PPF   … Continue reading →

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3000 years prove pensions are in our DNA!

Posted on August 24, 2023 by henry tapper

What a joy to read this post from Ziga. Thanks for sharing this nugget from the early 13th century. The power of a lifetime income!   A classic concept Annuities have been around since the Roman Empire.  It’s fanciful to … Continue reading →

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Confusing evidence. Aon and Aegon’s bogus trade-offs

Posted on August 15, 2023 by henry tapper

Aon has produced a survey of  Aegon customers who are approaching the point they could choose pension over pot by buying into CDC, annuitizing or drawing down from their pot.  The survey is interesting not so much for the results … Continue reading →

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The rule of 6 – why high mortgage rates spell good news for pension pots!

Posted on June 20, 2023 by henry tapper

Six – is a tragic number. Yesterday , the press decided to introduce a new number to the national consciousness. The number 6. It it the interest rate that mortgage payers will have to pay for a two year fix … Continue reading →

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