Fighting the monotony of annuity purchases

annuities

Those who work in the financial services industry have lobbied for some time against the compulsory purchase of annuities at age 75 yet it is almost routine to enforce buying them at much younger ages

Winning customers is expensive, as every financial services professional knows. Acquisition costs are high, funds are low and contributions are often small. Over the years, the relationship consolidates, the funds mature and trust grows. Then what? Suddenly, the end. Just as the fund becomes really substantial, it is paid out and the customer relationship collapses. A fleeting goodbye to a £100,000 relationship and back to the weary grind of finding another customer with £100 a month to spend. What's left is an annuity, thought of by many as the dullest, lowest margin, most opaque financ...