In a research study titled, “Va Va Voom,” the global consulting firm Oliver Wyman predicts that U.S.-style variable annuities could be as successful among European Baby Boomers as they have been in the
Wyman reports that in the
At least one observer is skeptical of the hype, however. Nigel Callaghan, pensions analyst for Bristol-based Hargreaves Lansdown, said, “There is a myth being created about how popular these are in North America and
Wyman’s research showed that European Boomers have six specific investment needs and demands: longevity protection, liquidity, flexibility, asset protection, financial advice and general services.
Current European products are becoming less suited to these needs, the report said. Traditional insurance profit-sharing products, for instance, typically have opaque methods of reducing risk and dampening profits. Short-term structured products, for their part, offer little long-term asset protection, longevity insurance, or flexibility.
Wyman expects to see variable annuity assets potentially reaching £32bn, or about $65 billion, in