There has been a surge of income drawdown investors have requesting annuity quotations as a result of the volatile stockmarket conditions we are witnessing currently. In the last three weeks there have been signs of a ‘major capitulation’, according to Living Time.
Since the middle of October a significant number of people with income drawdown contracts, who have seen big falls in the value of their pension funds, have been looking at annuities for the guarantees they offer. Security has become the driving factor.
The huge swings on the markets have really brought home the dangers to those in income drawdown contracts and even experienced investors are looking for ways out of their predicament.
It might not be the best solution for people to believe they can only get security of income by giving up all flexibility. A fixed-term annuity of the type offered by Living Time can provide guaranteed income and investment growth, plus a guaranteed capital sum at the end of the term. Furthermore, it offers flexibility to let the dust settle so savers can restructure their finances sometime in the future.
