Personal Pension  

An annuity isn’t a drag, don’t raid your pot

This article is part of
Pension freedoms teething trouble

Finally, the buzzword at the moment is ‘blended solutions’, and guaranteed annuities are the basic component in most combinations of retirement income solutions.

Billy Burrows is director of Retirement Intelligence

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Key points

When the pent-up demand for cash subsides it is hoped that a significant number of people will return to using their pension pots to generate income.

For most people, flexibility is desirable but certainty – gained from having an annuity – is more important.

Sophisticated new product developments and annuity buyback will come to the fore, as will blended solutions.