3 NOVEMBER 2001, Page 36

Annuity scam

From Mr Colin Sutherland Sir: Simon Nixon's article (Pensions? I'm not buying one', 20 October) hit the nail on the head. But what he did not address was the consequent rip-off of annuities. The rates are bad. and the insurance companies score again heavily when the recipient dies early.

The pensioner would receive virtually the same income from a bond, and his capital would be preserved for his inheritors.

Colin Sutherland

London W6