Annuity sales drop in Britain

UK retirees are holding out for higher interest rates, pushing annuity sales lower, reports the Financial Times.

Last year, British insurance companies sold 67,000 fewer annuities than the year before, a drop of 16%.

Read: Last year’s tax traps

The UK industry has been criticized as disorderly by the Financial Conduct Authority, which also said consumers aren’t shop around enough before making a purchase, the Times reports.

Industry experts say demographics—there were fewer 65-year-olds in Britain last year—as well as exceptional sales in 2012 and changes to regulation, are also affecting sales prices.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.