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Product Provision for a Modern Retirement

A Sapiens White Paper

By Jeff Denham, Stuart Hayman

Contact Details [email protected]

For more information please contact us at [email protected]

mailto:[email protected]

Product Provision for the Modern Retirement

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As part of an on-going series of articles, Sapiens are looking at the changing nature of the

retirement journey for an ageing population, and in particular its impact on the provision of

financial products in the UK. In our analysis, we take into account several of the major factors

impacting the retirement market today, including changes in the approach to consumer advice,

the recently announced statutory changes in decumulation rules and several interesting product

developments we have seen in the last few years.

Let us meet Mr Smith

When John Smith reached 65 years of age, he diligently requested valuations from the three

pension pots he’d accumulated over a lifetime of work and found that he had a fund in excess of

£200,000. For John Smith this was a lot of money, and the expenditure on planning his

retirement journey would be the single largest expenditure of his life. John Smith dutifully met

with his IFA and asked for a summary of the options available to him. Prior to the recent budget

announcement, these could have been summarised as:

take a tax free cash sum

purchase an annuity

set up a drawdown

or defer retirement (or a combination thereof)

John Smith’s reaction?

“Is that it?”

This is a true story recounted by an IFA colleague (albeit the names have been changed) and it

reflects the lack of choice available to would be retirees in the UK today. And while the more

imaginative product providers are actively looking at ways of increasing the choice available to

their client base, the reality is that for the most part, the current product choice available to a

would be retiree in the UK in 2014 reflects a model that was primarily designed for a retirement

initiated several decades earlier.

It is true, that the recently announced changes potentially increase the amount of choice

available to the retiree, but at a cost (something we will explore further a little later in this

paper).

A Changing Retirement Model

In a previous paper, we have discussed the motive forces changing the retirement landscape in

the UK and the fundamental shift this is causing in how retirement is perceived by an individual.


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In this paper we will look at how traditional product provision has been used to meet the

historic model of retirement, we will ask whether the UK financial services industry has kept

pace with a changing model of retirement and we will speculate as to what new products are

required to support this new retirement model and how this can be implemented. We will look

at if and how, the recent Government proposals for decumulation impact this retirement model

in terms of product choice.

The first step in planning a retirement journey is, as every IFA knows, to ascertain what the

needs of the retiree are. At a most fundamental level, every retiree is looking for the same

simple needs to be satisfied.

Back to Mr Smith

If we take Mr Smith from our example above, and provide him with a notional “needs analysis”

outcome:

This all seems straightforward, but when Mr Smith is questioned about his retirement journey

plans it becomes apparent that he is not looking at a single one-and-done event. His desired

retirement profile and annual income requirement is something like:


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So how can our industry provide a product(s) to satisfy those needs?

A Traditional Model?

The traditional model of retirement product provision has been predicated on the idea of

retirement as a single transformative event. The position before the retirement event is clear

and unambiguous; for a defined contribution pension, a pot of money exists that will be used to

purchase an income payable until death, for a defined benefit pension, the income has already

been reserved for. After the event, the position is even clearer. There is an income, perhaps

guaranteed, perhaps index-linked, but an income that will not change outside those parameters

for the remainder of the retiree’s life.

This model has been well supported by traditional retirement product provision based on the

purchase of an annuity and the drawing of a tax free cash lump sum on retirement (A model

largely determined by legislation introduced over 50 years ago).

The key to the success of this model has been the view of retirement as a single event. For a

retiring individual with limited life expectancy (maybe 10 years post retirement), relatively low

retirement expectations (maybe buy the grandkids a nice Christmas present every year and take

a few trips to Torquay) and no real expectation of care home provision, this was more than


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satisfactory. A needs analysis for a retiree from 1970 might be as simple as provide enough

income to enable him to be fed, kept warm and keep a roof over his head.

But does this kind of model really satisfy the needs and requirements for our Mr Smith? Mr

Smith, it is clear, has a fundamentally different view of retirement from the traditional approach

that his parents or grandparents might have expected. In terms of his needs analysis, this model

would fail:

Perhaps Mr Smith will want to continue contributing to his retirement ‘pot’ even after his

decision to take ‘part retirement’.

The 2014 Budget has introduced considerable flexibility which will inevitably lead to Providers

offering increased choice in product features, but it hasn’t changed the fundamental

presumption on which most retirement advice is based today – that it is a single event.

Or Perhaps The Recently Evolved Model?

Whilst the traditional model is still the default choice for many retirees in the UK, providers have

been making positive moves in relation to a more flexible and targeted approach to retirement

products over the last fifteen years.

The default model still stands in that retirement is, for most people, a single transformational

event rather than a scheduled gradual transition from a working state to a retired state.

Whether this is how it should be, is another matter, and one for our industry to redouble its

efforts in educating a retiring public as to the ways a retirement can be modelled. Products that

have supported the traditional retirement journey have become more sophisticated and do now

provide some opportunity and flexibility for a more personalised retirement choice.

Enhanced/Impaired Annuities – The first impaired annuities appeared on the scene in

the mid-nineties, and have developed from simple smoker/non-smoker differentials into

the sophisticated, fully underwritten products as of today. The increasing availability of

enhanced/impaired annuities and the competitive pricing and underwriting that goes


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with them has certainly helped to remove some of the traditional complaints against

annuities and annuity providers. It is no longer the case that the sick and life impaired

have to pay for the longevity risk of the healthy (for evidence, see the types of product

offered by the likes of Partnership and Just Retirement).

But there are still concerns in this market. Despite the ABI annuity code insisting that

providers highlight enhanced annuities where applicable, the take up hasn’t been

entirely positive (As Tom McPhail of Hargreaves Landsdown has pointed out, ‘Research

shows that well over 50% of annuitants qualify… but only 16% purchased an enhanced

annuity.’i). And the larger the enhanced annuity market, the bigger the impact of the

mortality experience and thus a larger detrimental impact on the cost of standard

annuities.

For our notional Mr Smith, enhanced annuities certainly help provide a more personally

priced option in retirement, but they are still a one-stop shop without the flexibility for

change as circumstances change.

Investment-Linked Annuities - A more recent introduction to the retirement product

market is the Investment linked annuity. These come in two flavours, the with-profits

version or the unit linked version. In both cases, the annuity return is dependent on the

investments, much the same as an investment bond. Arguably there is little to gain from

an investment linked annuity that you couldn’t obtain from an investment bond.

However, the investment-linked annuity does at least take away some element of the

‘bound to a bad choice’ stigma that can attach to an annuity. If our notional Mr Smith

were to have purchased an Investment Linked Annuity in 2012, he would at least now

be able to benefit from a rising market – his traditional annuity would have bound him

to a bad decision until his death.

Fixed Term Annuities – For all their recent publicity (in particular when allied to the

‘third way’ retirement income model), fixed term annuities have been around since the

Romans. The fixed term annuity does pretty much what it says on the tin – a fixed

income for a finite period of time. The fixed term annuity offers none of the longevity

risk protection that a retiree is looking for, but it does take away the permanence of a

decision. Fixed term annuities can be a useful tool for designing a flexible retirement

model, and currently being used as a temporary solution in the market pending the

implementation of the recent budget measures.

Income Drawdown - Income Drawdown, introduced in 1995, has certainly helped in

allowing the would be retiree a degree of control over the level of income their

accumulated funds can provide. Income drawdown products do, by and large, allow an

individual to adjust their income level according to their needs. However, despite the


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strict oversight of regular GAD reviews (albeit somewhat less strict post 2014), these are

still investment products and are therefore subject to the ups and downs of investment

performance, thus reducing the certainty of income that retirees look for. A drawdown

at 150% of the GAD tables, as they stand today, represents a very real risk of fund

depletion before death.

One thing that is evident from the many parliamentary discussions and papers on

Income Drawdown, is that Drawdown development has primarily been focused on

increasing the flexibility of fund crystallisation at retirement for the wealthier end of the

market. Whilst not a bad thing in itself, this is only resolving a small part of the

population’s retirement problem.

Phased Retirement – Phased retirement may seem like the answer to our Mr Smith’s

needs. A well planned phased retirement would enable Mr Smith to match an income

stream to his desired retirement profile. However, there are currently very few products

or tools that fully support phased retirements. Phased Retirements are ordinarily

advised crystallisations of individual tranches of pension pot, i.e. a number of individual,

discrete retirements. So whilst offering the flexibility our Mr Smith is looking for (in

addition to well-documented tax advantages), the current market proposition for

Phased Retirement is not so much a product, as a series of advised individual events.

Additionally, most phased retirement propositions are set up in such a way that the tax

free cash is not available in full at retirement.

As with Income Drawdown, the heavily advised nature of phased retirement means that

this is very much the domain of the wealthier retiree.

So, yes, the last twenty years has seen developments in financial services that move the

retirement model away from the one size fits all approach, but much of this has been driven in

response to legislative drivers (we consider the impact of pensions legislation on decumulation

in our fourth paper in the series) and with a keen eye on the wealthier end of the retirement

market. The products and the options available to a retiree in 2014 are still predominantly

offering solutions to a single, transformative event rather than a series of subtle lifestyle

changes, albeit that event is now more personalised. And the mass and mid markets have been

ill-served by product development in the last twenty years.

In short, these products alone do not meet the retirement requirements identified in Mr Smith’s

needs analysis.


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Annuities and the Budget 2014

Much of the media response to the recent budget changes have focused on headlines such as

‘Death of the Annuity’, ‘Annuities Industry Reeling’ and other such dramatic statements. There is

no question that the changes are to be welcomed, and that the proposed freedoms will

encourage products of the type we are outlining within this paper.

However, we are firmly of the belief that, to paraphrase Mark Twain, news of the death of the

annuity are a great exaggeration. There are four strong reasons for this belief:-

For any would be retiree, the savings built up throughout their accumulation phase have

been done so to support the provision of an income into retirement. This hasn’t

changed. Of course there will be a small handful that will withdraw funds and buy the

proverbial Ferrari, but the reality is that most will look to use these funds to subsidise

retirement income.

Secondly, the changes do not provide the ‘free money’ that some articles are

suggesting. Taking our Mr Smith, for example, if he chooses to withdraw his entire fund

secure in the knowledge that he can manage his retirement investment himself, he still

faces a substantial tax bill. To put numbers to that, if we assume our Mr Smith has a

current taxable income at retirement of £19,000 (made up of part time work and state

pension) and a pension fund value of £200,000, from which Mr Smith will take the full

25% tax free cash allowance of £50,000.

Of course, Mr Smith can always draw his funds in tax efficient chunks each year, and we

look at that option in our next section.

Thirdly, the issue of advice raises its complex head. Despite government assertions of

funding being made available for ‘soft advice’, the reality is that most retirees will not be

able to afford the level of advice required to support a complex phased retirement

model that is tax efficient. And any advice given will be tempered with caveats around

the uncertainty of life expectancy (we certainly do not believe that Steve Webb’s

proposal of offering people life expectancy figures can be used in any legally binding

advice situation).


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Finally, and perhaps most important, no other product in the market offers protection

against the longevity risk. What if I live to 100 years old? I only planned to live to 85. The

reality of that scenario is that you will be living off the state for the last 15 years of your

life. For most retirees without access or funds for ongoing retirement advice, an annuity

is still the safest option for providing a lifetime income.

So, whilst not the be all and end all of retirement provision, we certainly do believe that

annuities have a place in any properly advised future retirement model.

Having defended the annuity position, we do firmly believe that the changes allow a great deal

more flexibility in designing a set of products that fits our Mr Smith’s retirement needs.

Better Products, a more Flexible Future – Giving Mr Smith the retirement

he wants

So, what products would give Mr Smith the retirement he wants?

The first step in looking at the product(s) appropriate for our Mr Smith is to dismiss the

assumption that his retirement is a one stop event. As we have discussed in a previous paper,

we are likely to see an increase in people demanding a more flexible approach to retirement as

they incorporate a more structured approach to transitioning from work life into retirement.

If we now take account of Mr Smith’s required income stream from 64 to 80, we can see that, in

addition to the income that will be provided by his pension pots, Mr Smith also has a set of

additional incomes coming from outside those that can be provided by his retirement funds. If

Mr Smith’s needs are posted onto a timeline, it would look something like:


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The pension gap (in purple) represents the amounts that Mr Smith requires from his pension

pots to enable him to maintain a level of income consistent with that documented in his needs

analysis.

Whilst the traditional single event annuity purchase at retirement clearly does not support Mr

Smith’s requirement, a number of the newer products available on the market today do - but in

each case at the risk of failing one of his other requirements:

Income Drawdown – Mr Smith can consolidate his pension pots and set up a flexible

income drawdown schedule that matches the income required for his pension gap over

his retirement years. However, this potentially fails on one of his requirements, which is

to ensure he is protected against his investments falling and leaving him short of funds

in later retirement. In addition he is forced to take some of his take free cash earlier

than required.

Phased Retirement – Mr Smith can crystallise only the amount he requires from his

pensions pots to purchase lifetime annuities for the amount of pension gap at each

transitional event in his retirement. However this still carries the risk that the

uncrystallised funds could see a drop in value if investments perform poorly.

Additionally, it does not allow Mr Smith to reduce his income in his less active years.

Fixed Term Annuities – Mr Smith can purchase a fixed term annuity for the period

between each retirement transition event. But again this runs the risk that the value of

uncrystallised funds could fall. Additionally, there is no guarantee that the interest rates

used in annuity calculations will be as favourable as those available later.

There very clearly is a choice to be had between certainty and flexibility. The more flexible the

product required, the less certainty can be applied in the income provided by that product. One

of the most important elements for Mr Smith was to ensure that he was able to adapt his

retirement to unforeseen events, and the absence of flexibility and any protection type product

features precludes that.

So, if we take this conflict as the central issue concerning product design for retirement products

for today’s retiree, how can it be resolved?


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New Products to Solve the Problem?

New Annuities

The lifetime annuity product has remained unchanged in principle since the Victorian days – a

lump sum purchases a guaranteed income for the remainder of the annuitant’s life. For the

purchaser there is clearly an element of trust involved – a lump sum is paid in return for a steady

and guaranteed income. There is no sharing with the annuitant the details of the gilts purchased

to support that annuity, the rates of return or the cost of annuity administration. As an industry

under the aegis of the TCF initiative we have worked hard to demonstrate openness and fairness

in most products, yet for some reason annuities seem to be an exception to this. This is a

subject that is gaining national visibility, with a number of MPs accusing annuity providers of, at

the very least, not being entirely open with their pricingii.

There are already moves in the US calling for more openness in sharing the inner workings of an

annuity with the customer. Cooperstein suggests that such a move will facilitate the ‘evolution

of innovations for starting and stopping payment; investment optionality and control’iii. He

shows how easy it is to separate out the capital, the payment, the interest, and the longevity

risk elements of the annuity. If this is the case, then it is logical to think that a client could

continue to pay for his/her longevity risk but suspend payments – the suspended payment can

then be factored back into the annuity to offer an increased payment when payments are

restarted

By suspending payments for a year, the annuitant retains those would be payments in the

residual value of the annuity, and thus enables an increased pay-out in later years without

compromising the annuity pricing model. This is exactly the kind of flexibility that our Mr Smith

is looking for.


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The other key aspect needed for the new annuities is the ability to transfer. The IFA colleague

who first explained the Mr Smith scenario to us, has also flagged that one of the most oft

repeated questions he receives is ‘if I buy an annuity now, will I be able to change it when

interest rates rises?’. Of course the answer is no, but not for any regulatory reason. HMRC have

no objection to an annuity transferiv. An annuity in payment has an inherent value. Insurers can

calculate this value. And surely it is in the interest of the annuitant to take an MVA or equivalent

charge (if applicable) to switch to a better performing annuity. Yet annuity transfers are almost

unheard of.

Portfolio Pensions

Another approach to solving the flexibility versus certainty issue is that of Portfolio pensions.

Ernst and Young have documented a novel approach to the portfolio approach, comprising a

layered solution of guaranteed funds/annuities and investment funds. The guaranteed funds

provide the certainty of income that the customer is looking for, whilst the investment funds

can then be targeted to specific life events. As a product, this would enable our notional Mr

Smith to match his desired retirement profile with the investment profile of the portfolio

product. This is the kind of product approach that benefits greatly from the proposed Budget

changes on pension funds withdrawal.

Essentially this product takes the individual elements of the drawdown and annuity products

and brings them together under a single product structure, with the added element of specialist

investment advice. It could be seen as a decumulation version of the SIPP. Thus whilst giving

flexibility and a level of certainty, there is still investment risk attached to the investment fund


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element of the product – however, arguably these are the elements of retirement income that

the customer could afford to lose (i.e. the travel fund, the inheritance fund).

As Ernst and Young rightly point out, this would have to be a collaborative solution, with

insurers providing the guaranteed element, and asset managers the investment elementv. It is

this collaborative nature, however, that perhaps limits the markets into which this product

could be targeted. It is unlikely that a small pot pension would be able to afford the on-going

asset management costs and advice that would be essential to the success of this product.

However this is an excellent solution for the wealthier end of the market.

Supermarket Annuities/New Drawdown

One of the most disregarded elements of retirement is protection. It’s almost as though we say,

I’m retired now, what’s the worst that can happen? The truth is that all of those unforeseen

events that we spent our working lives protecting against, will still happen after we pass the

magic retirement date – accidents,sickness, divorces, even unexpected children. A retiree still

has a full range of protection needs after a retirement, but has a markedly reduced income to

support those protection needs. Protection is often one of the first pieces of expenditure

dropped in retirement.

Supermarket plans are products that combine both an investment element, from which a range

of protection elements can be subsidised. Whilst not having a strong tradition in the UK, those

organisations that have marketed these products in the UK have done so successfully. The key

to the success of these products is the fact that the owner can guarantee their protection needs

in a time of poor performing investments, but benefit from strong performing investments.

It is not an enormous stretch of imagination to see that a decumulation product could be

structured in much the same way that a supermarket product is. In this way, much of the

uncertainty of retirement can be mitigated in the same way that uncertainty is mitigated in our

pre-retirement lives; through the use protection products.

ABI figures suggest that 1 in 3 individuals will go into carevi. Put that another way, and there is a

2/3 chance that I won’t go into care. So for our Mr Smith, it is surely more attractive to pay a

premium based on mutuality of risk for an event that might not happen through pooling, than it

is to save for the event in the certainty that it will happen.

A supermarket annuity or drawdown product could protect against care (and other unforeseen

circumstances) by offering protection cover paid for from the annuity or drawdown pot.


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The three as yet unmarketed product models that we have looked at above, all have the

advantage of:

Flexibility – the products, and elements of them, can be switched on and off according

the customer needs

They are all, or should be all, transferable, enabling the retiree to react to major events

They allow for the addition of protection elements

They can support all segments of the market; the mass, the mid and the high net worth.

Allied to a good advice model, the products based on the ideas proposed above can support all

of Mr Smith’s requirements.


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Why hasn’t this already happened?

So, the final question to be asked, is why aren’t products of this nature available already and

what can be done to encourage them.

1 – The obvious restriction has been the legislative environment. The changes proposed

in the 2014 Budget alleviate much of these restrictions. It remains to be seen whether

the advice model needed to mitigate the risks inherent in unregulated drawdown can be

implemented in a cost effective manner available to the whole market.

2 – The market drives the expectation gap. Would be retirees are bombarded with

adverts selling a retirement lifestyle of Caribbean yachts and champagne dinners, when

this palpably is not realistic for most people. The reality of today’s retirement landscape

is that insurers have been selective in targeting the most profitable end of the

retirement market, and as such this is where the product development funds have been

spent. As a result of this, the mass and mid market are still supported by a product set

that has barely evolved in the last century.

3 – There has been an unwillingness to accept, or perhaps an unawareness of, the

changing nature of retirement from a single transformative event to a graduated series

of events. Many consumers do not have access to the advice and knowledge needed to

identify and then manage a gradual retirement, and all too often take the simple route


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of a one stop decumulation. There is little to suggest that the Budget 2014 changes will

change this mindset. This is accelerated by simple human greed; it’s hard to resist the

lure of drawing an entire fund.

Insurers for their part have been only too willing to sell the annuity and forget about the

retiree thereafter. Post 2015, the same issue will apply to the unadvised who draw

down their entire funds. In the event, many insurers have missed out on the

reinvestment opportunities afforded by having a captive and suddenly capital rich

customer.

4 - Underwriting sophistication has, for the most part been understandably developed

for the protection market. It is only recently that these advances in personalised

underwriting capability (and the consequent impaired annuities) are being taken on by

the retirement market. As we have mentioned above, impaired annuity awareness is

high, but take up low. It is arguable that every annuity sold should be underwritten in

the same way protection business is underwritten, and thus fairly priced for each

individual.

5 – As we discussed above, a Chinese Wall exists between the protection and

investments elements of our industry. They are seen as discrete and separate sub-

industries and as such protection has become the forgotten element of retirement.

6 - Perhaps one of the problems of this model has been semantic in nature: the

definition of the pension has come to mean retirement income. The truth is the pension

product is only an element of retirement income. A genuine retirement solution should

consider all elements of actual and potential retirement income, including state

pensions, houses, future inheritances and so on.

7 – There has certainly been an element of insurer inertia when it has come to product

innovation in the retirement space. We are, it should be said, seeing changes in this, and

organisations such as Partnership, Just Retirement and Scottish Widows have led the

way with imaginative new retirement products.

8 – One clear and obvious hurdle to evolving the retirement product has been systems

capability. Many of the systems that currently administer retirement decumulation

products do not support sophisticated underwriting or product configuration tools

required to support an unbundled annuity or portfolio pension. There is certainly a

requirement for the retirement industry to modernise its decumulation support

systems.

9 – Last but certainly not least, the dearth of advice for any would be retiree is a key

driver in many of the issues listed above – we address this in our advice paper.


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So - What next?

If the above sounds like an alarm call for the state of product provision in the retirement

industry, it should be noted that in the last two years the rate of product development has

accelerated. The financial services industry is grasping the mettle when it comes to addressing

the requirements of the new generation of retirees. Industry bodies such as the ABI (in

particular with the development of The Annuity Code) and the Pensions Regulator are leading

the way in ensuring that both the industry (insurers and advisers) and the consumer are fully

informed.

We believe there are four further areas which can encourage the industry to embrace ideas

such as those we proposed above:

Legislation - The changes proposed in the Budget 2014 will act as a catalyst for insurers

to exercise imagination in offering new and different retirement income solutions.

These changes will increase the competition for retirement funds, and insurers will find

themselves challenged by other financial services sectors in the pursuit of those

retirement funds.

A Growing Market – It is quite clear that the demographic factors we looked in our first

retirement paper point towards the decumulation market as a growing market. This in

itself is a reason for financial services providers to ensure that they can provide the best

and most appropriate products for a range for the wide and varied range of would be

retirees.

Inform the Market - It is quite clear from existing evidence that most retirees do not

take or have access to sufficient information or knowledge about what they can and

indeed ought to do at retirement. The freedoms proposed in Budget 2014 will increase

the risk of the people entering retirement unadvised. The ABI retirement journey

guidelines are a good start, but there is much more for the industry to do in terms of

educating would be retirees as to what their options are at retirement.

Support the Changes –- Insurers must ensure that there are no technology constraints

to introducing the flexibility needed to support the modern retiree. One of the primary

reasons for the lack of product development in the retirement market has been the cost

overheads of developing systems that are not really fit for the retirement model we

have described above.


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To summarise, this is an exciting time for insurers, advisors and most importantly, retirees. It is

imperative that all three embrace the opportunities and provide a financial retirement model

that fits with the expectations of a modern retiree.

References

i http://www.professionalpensions.com/professional-pensions/opinion/2273709/ae-success-rests-on-decumulation ii http://www.thisismoney.co.uk/money/pensions/article-2535271/New-warning-pensions-annuities-Conservative-MP-warns-risk-causing-big-mis-selling-scandal.html iii http://s3.amazonaws.com/presspublisher-do/upload/567/Cooperstein_Paper.pdf iv http://www.hmrc.gov.uk/manuals/rpsmmanual/rpsm09101820.html v http://www.ey.com/Publication/vwLUAssets/Take_control_of_the_decumulation_

agenda/$FILE/EMEIA_Asset_Management_Viewpoint_-The_Decumulation_Agenda.pdf

vi https://www.abi.org.uk/Insurance-and-savings/Products/Long-term-care.html

http://www.professionalpensions.com/professional-pensions/opinion/2273709/ae-success-rests-on-decumulation


http://www.thisismoney.co.uk/money/pensions/article-2535271/New-warning-pensions-annuities-Conservative-MP-warns-risk-causing-big-mis-selling-scandal.html


http://s3.amazonaws.com/presspublisher-do/upload/567/Cooperstein_Paper.pdf

http://www.hmrc.gov.uk/manuals/rpsmmanual/rpsm09101820.html

http://www.ey.com/Publication/vwLUAssets/Take_control_of_the_decumulation_

https://www.abi.org.uk/Insurance-and-savings/Products/Long-term-care.html


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Canada 10 Kingsbridge Garden Mississauga, ON, L5R 3K6 Tel: +1 905 507 9700

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Belgium Brusselstraat 59, 2018 Antwerp, Belgium Tel: +32 3 3040800

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Japan Queen’s tower C 11F 2-3-5 Minatomirai, Nishi-ku Yokohama 220-6211 Tel: + 8145824777


19 www.sapiens.com

i http://www.professionalpensions.com/professional-pensions/opinion/2273709/ae-success-rests-on-decumulation ii http://www.thisismoney.co.uk/money/pensions/article-2535271/New-warning-pensions-annuities-Conservative-MP-warns-risk-causing-big-mis-selling-scandal.html iii http://s3.amazonaws.com/presspublisher-do/upload/567/Cooperstein_Paper.pdf iv http://www.hmrc.gov.uk/manuals/rpsmmanual/rpsm09101820.html v http://www.ey.com/Publication/vwLUAssets/Take_control_of_the_decumulation_

agenda/$FILE/EMEIA_Asset_Management_Viewpoint_-The_Decumulation_Agenda.pdf

vi https://www.abi.org.uk/Insurance-and-savings/Products/Long-term-care.html





http://s3.amazonaws.com/presspublisher-do/upload/567/Cooperstein_Paper.pdf

http://www.hmrc.gov.uk/manuals/rpsmmanual/rpsm09101820.html

http://www.ey.com/Publication/vwLUAssets/Take_control_of_the_decumulation_

https://www.abi.org.uk/Insurance-and-savings/Products/Long-term-care.html

paper - sapiens · romans. the fixed term annuity does pretty much what it says on the tin – a...

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