Fidelity's Dymott: This is not the end for all annuities

ANNUITIES

Yesterday's Budget announced the end of the requirement to purchase an annuity, but it is not the end for the products themselves, says Fidelity Worldwide Investment's Ed Dymott.

The budget reforms have the potential to turn the retirement market on its head. These changes have been well signalled by the government, through their ongoing review of the annuities market. The industry has not gone as far as the government wanted, and so they have acted. There is much detail to still work through, and clearly there are some risks and unintended consequences - but it is the right move. Overall the announcement is good news for investors, as it will once and for all break the default positioning of annuities as the primary retirement option. It will provide more ...