Financial advice will be increasingly important as more people turn to income drawdown to fund their retirement as annuity contracts become "unpalatable", a platform has said.
Alliance Trust Savings (ATS) said a perfect storm for annuities - brought on by falling gilt yields pushing rates to record lows - would result in more retirees using income drawdown. It said the retirement income option could become the default for savers but warned it was a more complex option than traditional annuities. ATS senior pensions proposition manager Brian Davidson said advice would be essential. He said: "At such low prices, annuities will be unattractive for many more people, with the disadvantage of very low levels of income far outweighing the benefit of income cert...
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