Fixed-term annuities market heading towards £1bn a year

nest_golden_egg_410The UK market for fixed-term annuities is likely to more than double to £1bn (€1.12bn) a year by 2013.

The prediction comes from insurer MetLife Europe, which estimates that between £350m-£400m of fixed-term annuities are sold each year at present.

Increased competition and innovation are thought to be principle drivers of growth in this space, while a combination of increasing concern about healthy life-expectancy, the need for retirement income flexibility, and growing interest in alternative solutions to conventional annuities could also provide a boost.

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