Social experiment: Where next for retirement income post-pensions freedom?

Where next for retirement income post-pensions freedom?

clock •

We're six months into the ‘social experiment' that is pensions freedom. Here, Andrew Tully makes the case for packaged retirement income through a drawdown/annuity combo

Time flies when you are having fun. Incredibly, we are almost six months into pension freedom. Although it is way too early to call whether people are achieving better outcomes from their savings, recent data from the Association of British Insurers does shed some light on customer behaviour. A chunky £2.5bn has been paid out in the first three months since the freedoms came in, although encouragingly, £2.3bn has also been used to buy regular income products, either annuities or income drawdown. The data shows a fairly even split between annuities and drawdown, with £1.3bn invested...

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

Do clients already own the best retirement portfolio?

Do clients already own the best retirement portfolio?

'Feeling safer and being safer aren't the same thing'

Alex Funk
clock 29 October 2026 • 4 min read
Budget 26: Government to get rid of two-year tax rule on lump sum death benefits

Budget 26: Government to get rid of two-year tax rule on lump sum death benefits

Changes will also be made to how tax due on excess lump sum death benefits is collected

Jonathan Stapleton
clock 28 October 2026 • 1 min read
Budget 26: State pensioners to be shielded from income tax

Budget 26: State pensioners to be shielded from income tax

State pension expected to rise to £13,036

Sophia Panayi
clock 28 October 2026 • 2 min read