It's fair to say that annuities have been given a pretty rough ride in recent years. There have been plenty of articles in the press, including Retirement Planner, highlighting the benefits of alternatives such as income drawdown and ASP. However, in spite of this I must admit to being shocked by the title of a recent debate held at London's Cass Business school entitled "Will drawdown replace annuities?"
I know that advisers and their clients have their issues with annuities but the fact remains that annuities have served millions of people's retirement needs well over the years. It is fair to say that drawdown is more flexible than annuities and offers the opportunity for clients to stay in control of their investments right up until the age of 75 - both important factors for many retirees. However, the strength of annuities is grounded in its ability to pay a stable guaranteed income over the long term - surely also an important factor? Sales of drawdown have increased since A-Day and i...
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