DCs promise to boost annuities

The Employer Task Force on Pensions has advocated various drawdown products for early retirement to ...

The Employer Task Force on Pensions has advocated various drawdown products for early retirement to reduce the length of time annuities have to provide income to pensioners. While criticising the annuity market for failing to lift consumer confidence and lacking in good value, the committee predicts the market will grow by 10% a year over the next decade, fed by the increase in defined contributions schemes. Faced with such demand, Peter Davies, chairman on the Employer Task Force for Pensions, believes the market will struggle to meet it. However, given the paucity of corporate bonds a...