Annuities - what are the alternatives?

The annuities market trebled in size in 1991 but depite recent signs of revival, rates have been in long-term decline

The market statistics for annuities paint a rosy picture of a booming industry in extremely good health. According to the Association of British Insurers, the market is currently worth at least £8bn a year and has trebled in size since 1991. Around 300,000 new contracts were taken out in 2005. The future is certainly bright - the ABI again predicts the market will grow to around £18bn a year by 2012. Commentators do not of course all agree. Some think the growth will be even more impressive. They point to accelerating growth as the decline of defined benefit or final salary pension schem...