Flexible income annuity protects against inflation, says MGM Advantage

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Flexible income annuity protects against inflation, says MGM Advantage

Wed 3rd Mar 2010

Aston Goodey, the marketing director for MGM Advantage, suggested that the risk of inflation would mean that more people would choose a more flexible option as they planned for a secure retirement.

He said: "More needs to be done across the industry to improve the choice for people at retirement and we believe investment-linked annuities have an important role to play."

Research which analysed the ONS Family Spending Report (2009) and the Consumer Price Index in January (2010) revealed that a retired household would need an extra £774.70 per year to follow in the lifestyle it enjoyed only a year ago.

The cost to heat a house rose by 20 per cent in the period between December 2009 and January this year - the highest rise on record - which corresponded with the recent crude oil price increase.

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