Mike Morrison: The annuity puzzle - what price the guarantee?

In the wake of pension freedom - and perhaps understandably - the sale of annuities seems to have fallen off a cliff. The statistics show that income drawdown is now the first choice retirement option, but they also suggest investment risk is not what some people want. So when I see headlines about income drawdown becoming the retirement default option, as opposed to annuities, it makes me a little bit concerned that we are confusing products and client needs. Let's not forget that annuities are insurance contracts that pay out a sum assured - OK, as gilt yields fall, the cost of buyi...