Compulsory and Voluntary Annuity Markets in the United Kingdom

Edmund Cannon and Ian Tonks

in Securing Lifelong Retirement Income

Published in print May 2011 | ISBN: 9780199594849
Published online September 2011 | e-ISBN: 9780191729119 | DOI:
Compulsory and Voluntary Annuity Markets in the United Kingdom

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This chapter describes the operation of both the compulsory pension annuity and voluntary annuity markets in the United Kingdom, and evaluates prices using a money's worth approach. This chapter finds that the money's worth was about 0.90 in 2004 but it then fell to about 0.80, although there is uncertainty about the appropriate mortality table. The chapter suggests that the level of the money's worth is comparable to that of other financial products and it considers possible reasons for the recent fall.

Keywords: annuity markets; money's worth; mortality; compulsory annuities; voluntary annuities; United Kingdom; pensions

Chapter.  7841 words.  Illustrated.

Subjects: Pensions

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