LPI annuities offer poor value

purchasers of an index-linked annuity would have to live to 114 to equal level annuity benefits

Index-linked annuities continue to offer poor value for money, according to research from Standard Life. In the current low inflation environment, the group found, a 60-year-old male purchaser would need to live to the age of 114 to receive benefits from an index-linked annuity equivalent to those from a level annuity product. While at the moment it is compulsory for all pension savers to buy an annuity before age 75, depending on the type of pension, it may also be compulsory to carry inflation proofing. Protected rights, the fund built up from contracting out of Serps and/or the St...