Andrew Pennie looks at the options available to generate retirement income and some of the key client factors that should influence the recommended strategy
As a result of longer life expectancy and relatively low annuity returns, there has been a significant growth in the number of products available to deliver retirement income. The three main options are annuities, drawdown or one of a number of different third-way products. In retirement, clients face a number of key risks, most notably: Longevity risk - living too long and money running out Inflation risk - inability to maintain standard of living Investment risk - failing to generate real returns ahead of inflation Flexibility risk - inability to meet a significant ch...
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