Retirement 'not all about pensions' as savers help annuities take flight

A look at mixing guaranteed and non-guaranteed income

Hope William-Smith
clock • 1 min read

Putting guaranteed and flexible non-guaranteed income together gives a “best of both worlds in retirement” scenario to those at the close of their working life, according to Guiide.

The pension drawdown tool provider today (11 November) drew attention to how rising interest rates are driving people at the point of retirement to purchase annuities again, citing Financial Conduct Authority retirement income market data from earlier in the year. The regulator found lifetime guaranteed income (annuity) purchases increased by 13% to around 68,500 purchases during 2021/22. Canada Life research last monthly confirmed annuity rates are currently at a 14-year high which means the break-even point - the point at which someone would receive your original pension back throug...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

IFAs 'have role to play' in tackling 'blissful ignorance' around pensions

IFAs 'have role to play' in tackling 'blissful ignorance' around pensions

Advisers must ‘open people’s eyes to the reality’

Isabel Baxter
clock 16 June 2025 • 4 min read
We need to work together to tackle pension overconfidence

We need to work together to tackle pension overconfidence

'Clients may assume they're on the right track simply because they're paying into a pension'

Ahmed Bawa
clock 13 June 2025 • 4 min read
Pension freedoms have delivered flexibility in the last decade 'at a cost'

Pension freedoms have delivered flexibility in the last decade 'at a cost'

Consumers value choice but are aware of risk of running out of funds

Jasmine Urquhart
clock 12 June 2025 • 2 min read