Income drawdown has become an increasingly popular option among advisers for clients with smaller retirement pots, as demand for the product surged overall post pension freedoms, research has suggested.
Annuity rates are at their lowest level for almost two years, but the proportion of enhanced contracts sold is increasing, according to the latest IRESS At Retirement report.
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BlackRock has launched its first drawdown offering for pension schemes to capitalise on the Budget freedoms introduced earlier this month.
There has been a sharp rise in demand for financial advice over the past 12 months, according to accountants, who claimed people have become more aware of pensions and inheritance tax planning.