Yesterday's Budget effectively removed the requirement to ever purchase an annuity, causing shares in listed providers to drop over 50%, but is there value in the sector after such a monumental sell-off?
The Budget overhauled the savings and investment landscape in a dramatic and unexpected way, providing much more flexibility for people in retirement. In particular it allowed savers to take all their cash out in one lump sum, and said no one in retirement need buy an annuity. Investors saw the change as the effective end of annuity sales, with Just Retirement - the annuity provider - tumbling 42%, and peer Partnership Assurance - a provider of non-standard annuities for individuals with medical conditions - down 55%. Larger insurers and retirement specialists also sold off as the ...
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