Unlocking the future of retirement: Innovative annuity solutions

04 Jun 2025

The annuity market has seen significant advancements in recent years. Retirees are facing new challenges AND new opportunities.

Traditional methods around retirement planning are evolving, and innovative annuity products are leading the charge. Enhanced annuities are catering to specific health needs and investment-linked options are offering growth potential. These modern solutions are designed to meet the diverse needs of today's retirees.

Let's dive into how these cutting-edge products can help secure a comfortable and flexible retirement for your clients.

Enhanced Annuities

Enhanced annuities, also known as impaired life annuities, offer higher regular payments to individuals with certain health conditions or lifestyle factors that may reduce their life expectancy.

These annuities factor in medical history, like diabetes, heart disease and smoking habits, and provide a more tailored income stream. Higher payouts mean these retirees can manage increased healthcare costs and maintain their standard of living despite health challenges.

Investment-Linked Annuities

These combine the features of insurance and investment so retirees can benefit from market growth and still receive a guaranteed income stream. These annuities include:

  • Variable annuities, which invest in subaccounts similar to mutual funds
  • Registered index-linked annuities (RILAs), which offer a balance between growth potential and controlled risk

By linking annuity payments to investment performance, these products give retirees the opportunity for higher returns which can help them keep pace with inflation and achieve their long-term financial goals.

Flexible Annuity Options

With Flexible Premium Deferred Annuities (FPDAs), retirees can make contributions over time, rather than needing a large upfront payment. This flexibility is particularly beneficial for individuals who may not have that lump sum to invest initially but still want to secure a steady income in retirement.

FPDAs can be tailored to individual needs, with options for fixed interest rates, indexed growth, or variable subaccounts. This adaptability puts the control back with your clients and means they can choose the best strategy to match their financial situation and retirement goals.

Addressing Evolving Retirement Needs

These innovative annuity products are designed to suit the ever-changing needs for retirees whatever their situation and financial goals.

Enhanced, investment-linked, and flexible options offer personalised income and growth potential.

The goal is to offer financial security and peace of mind. Keeping up to date with these developments means you can support your clients in achieving a secure and comfortable retirement.