Question: Recent research suggests that while some investors are happy to pay for peace of mind, the high costs associated with variable annuities may not be justified for others - do you agree?

Nigel Barlow is head of retirement income solutions at Just Retirement The issues of risk acceptance and return dominate considerations for unsecured pensions. Providing a reasonable level of income for a lifetime is reliant on a rate of return the pursuit of which could endanger an individual's standard of living due to the risk involved. In effect the variable annuity sets a limit on the risk that has to be borne to achieve the required return. This limit comes at a price, increasing the gross return required. If your concern is to maximise income in retirement, the cost makes the var...