Pimco launches fund to help retirees aim for annuities

Pensioner-with-canePimco has launched a fund that seeks to replicate factors that underpin annuity prices so that savers in the UK can get the maximum from their retirement purchase.

The Pimco Select UK Retirement Strategy Fund will be managed by Mike Amey, who is based in London.

“For most investors, the few years before retirement are when their pension savings are at their highest but also most at risk from irrecoverable losses,” says Amey.

It remains to be seen what investor demand Pimco can summon up for the fund, seeing as changes announced by the UK chancellor George Osborne in last year's Budget have scrapped the effective requirement for pensioners to purchase an annuity.

Standard Life, a Scottish insurance company, said in August that its sales of annuities halved following Osborne's announcement.

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