Advisers and consumers face danger of confusion over annuities and income drawdown products, according to Canada Life.
The provider says the growing trend towards hybrid products, which combine annuity and income drawdown features, has led to labelling confusion. Canada Life points to recent press reports reviewing annuities, which are usually always income drawdown products. Bernard Footitt, technical support manager of pensions at Canada Life, says: “Not only are consumers confused but very often, when I speak to advisers, they are confused and are sometimes in danger of recommending these variable annuities because they believe they are totally secured in terms of income when actually they are not. The...
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