Retirees continue to favour drawdown over annuities, however, many pension savers taking the retirement income option without financial advice, which is worsened further by low levels of financial understanding, according to Aegon.
Its Global Retirement Study found that fewer than one in five (17%) pension savers in the UK identify advice as valuable and even less (9%) would consider paying for advice when converting their retirement savings into an income in retirement. Since pension freedoms were introduced only 28% of UK workers now want to convert all of their savings into an annuity. This is in sharp contrast to their European neighbours, with 47% in the Netherlands preferring this route, 44% in Germany and 42% in Spain. The problem has been compounded by a lack of financial awareness, with less than a q...
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