Retirement: Do Annuities still have a part to play?

Yes or no decisionAnnuities have had a tough time over recent years. The general dislike of this particular financial product, can probably be traced back to a time when anyone turning 75 had to buy one. Even though this rule changed many years ago, falling Annuity rates, potential miss-selling and political rhetoric (remember George Osborne’s Budget speech in 2014) have done nothing to improve the image of this most humble of financial products. Finally, of course, we have the introduction of Pensions Freedom, designed to deliver more flexibility in retirement; a word ...

Retirement: 6 reasons why you should still consider an Annuity

6 reasons why you should still consider an Annuity 150pxAsk 100 pensioners if they want a guaranteed income in retirement and we’d suggest most would say “yes”. But ask the same people whether they would like to buy an Annuity and many will say “no”. It’s fair to say that the term ‘Annuity’ has become somewhat toxic over the past few months; which is unfortunate as for many people it is still the best way to turn their pension pot into an income. Even if you don’t think an Annuity is the ...

Retirement: Government expects people to make “wrong choices”, 7 ways to avoid being one of them

Government expects some people to make the “wrong choices”, 7 ways to avoid being one of them?2014 has been a momentous year for pensions, with possibly the biggest changes in a generation announced. However, according to the man overseeing the new rules, Pensions Minister Steve Webb, some pension savers will “make the wrong choices” and end up less well off in retirement. Speaking at a recent conference Mr Webb said: “"This coming April some people will get it wrong. They will make the wrong choices. They will get a worse outcome than ...

Income Drawdown: Considering Income Drawdown? Do you know the risks?

Considering Income Drawdown? Do you know the risks?Following reforms announced earlier this year new figures have shown that pensioners are piling into Income Drawdown contracts. At the same time the average amount being transferred to Income Drawdown has shrunk, leading to fears that pensioners could be making unsuitable choices about their retirement income. The research produced by the Prudential, based on information from the Association of British Insurers, shows: Sales of Income Drawdown plans have increased by 73% over the past year Despite becoming more popular, the average amount transferred in to Income Drawdown ...