Demise of Annuities??

I am really surprised by the lack of communication from Actuaries on the subject of Pensions/Annuities post Chancellor's budget. Actuaries "own" annuities, dont they? I mean that's one of the core aspects of actuarial work yet, at this time,i haven't heard a lot of opinions from Actuaries or is it still very complicated that no one will understand their opinions?
I will like to inform myself though so if anyone knows of articles where Actuaries have given an opinion in the press or for the public,Please do share!
It'll be quite interesting to know what Actuaries or the Profession is doing to make the public aware of its role and clarify what exactly the profession is about. Actuaries know what they do,Joe-public doesn't.This an opportunity to educate and inform the public in my own opinion.

 

There was a thread discussing this that I can't seem to find any more. It did spiral out of control a bit.. possibly it was deleted. I think there's fairly mixed views about how this will impact things.

General consensus was that annuities will be less popular but someone posted an article mentioning 57% of people surveyed would still use part of their pot to buy an annuity (and something in the 20-25% range would use the majority of their pension for an annuity).

My view is that choice is better though it could end up with people making less than optimal decisions. While that risk is there for annuities (buying one and then only living for a few years is less than optimal with hindsight), annuities err on the side of caution by removing the market and longevity risk. Other retirement options could be more appropriate in some cases but are potentially more volatile.

 

Well, we are all watching and waiting to see how things unfold. I feel Actuaries ought to be at the forefront of this issue as they may well be but i haven't seen or read any such article from an Actuary except in forums such as this.
Having read articles in the FT,on BBC ,Professional Pensions,Moneymarketing etc and i am still looking for one which is written by an Actuary to give their opinion or one where an Actuary was interviewed.
I stand to be corrected,I just want to know as i haven't been able to find one.
Here's a link to an article in PP: http://www.professionalpensions.com...e-will-struggle-to-resist-urge-to-splurge-pot
-there are a lot of different surveys of people's opinion about what they will do or what they might do-OK!
What are Actuaries going to do though???
Do Actuaries have opinions that should matter on annuities at all?

 

It's dangerous territory. Annuities have been getting a severe bashing from politicians lately, as well as newspapers, both of whom are far better at swaying public opinion than actuaries are.

There is the danger that if we were to come out and defend annuities, it would be brushed off as "those rich capitalists trying to protect their profits".

Actuaries are doing most of their influencing behind closed doors, which is why you won't have seem much of it. We lobby government, and we help try to help advisers and politicians understand the value in the product so they can pass on these sentiments to the public.

I welcome the extra freedom for individuals that the budget announcements provided, but I fully expect that annuities will still be a key part of retirement planning for many people.

 

It is dangerous territory and actuaries are presumably treading carefully. I agree.
However,it all leads me to think that actuaries are not willing to stand 100% by annuities.
Background work (in the background as actuaries have always been) I reckon is good without publicizing every move being made. I wonder if Actuaries have been proactive enough in this sense though. We're yet to see if it'll deliver the desired outcome. As actuarial students, we are taught /made to understand the value of annuities and the sort of protection they can offer. Could such uses of annuities be emphasized by actuaries in the public domain too? ( what does this silence make of all the studies and exams on annuities-lots of questions here if i may say and after swotting to pass the exams,only to find out that they no longer have much practical relevance!-worried much!)
I think the Government have put the cards on the table perhaps after not being able to get through with actuaries or get a straightforward backing/explanation/innovative reform of ideas regarding annuities from actuaries in my own opinion.
It is indeed now that actuaries need to let all know the importance of the profession and what its all about.
I think it's best if the public are aware and educated about actuaries and annuities than made to sail through this and then wonder why an actuary should lay claim to being knowledgeable about annuities yet shy away from defending/standing by it. If it is a good product which serves the public as actuaries are committed to doing then can actuaries please come forward and defend what they do?
Or perhaps actuaries themselves have long lost confidence in annuities which were invented by 1st gen?