Annuities and drawdown may be two very different propositions, but both should play a part in retirement planning, argues Claire Trott, pensions technical manager at Suffolk Life.
With a combination of record low GAD rates and maximum income reduced to 100% advisers could be forgiven for ruling out income drawdown as a retirement option for their clients. Would they be right to do this? The simple answer is no. Drawdown and annuities are chalk and cheese, each carrying differing levels of risk and guarantees. To further complicate matters, there is no reason why any client would easily fall into one camp or the other, so a blend of both might be more suitable. In recent times the value of annuities has been called into question, partly due to continued falling ...
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