US Pensioners Opt for Income Security as UK Scraps Annuities

An increasing number of American workers reaching retirement are choosing to secure their pension income - just as regulation in the UK is scrapping that same system

Emma Wall 9 December, 2014 | 4:30PM
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Pensioners across the pond are choosing to fill their retirement portfolios with annuities – just as British retirees scrap them. Lifestyle magazines in the US boast advertisements lauding the benefits of “protected income in retirement”.

Annuities’ rise in popularity is in part due to a shift in American’s investment process – relying less on stock market performance and instead preferring to opt for outcome-based solutions.

“The whole world is converging towards the same thoughts and processes when it comes to portfolio planning,” said Schroder’s North American CEO Karl Dasher, speaking at a conference in New York last week.

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About Author

Emma Wall  is former Senior International Editor for Morningstar