The science of blending — annuities and drawdown in synergy

How and why blended solutions work for retirement income

clock • 4 min read

The realisation that there is a significant upside to including fixed interest guaranteed assets within drawdown should encourage platforms to act swiftly to meet demand, writes Stephen Lowe...

Blending takes the best qualities from different styles of coffee to create a smoother drink. Combining different coffees this way adds balance and complexity. It also highlights the best elements of each component . This is analogous in retirement planning to the relationship between annuities and drawdown. They are polar opposites in so many ways, but blended together they create a powerful synergy. They deliver what many retirees consider the ‘holy grail' of security with flexibility. Security is a key benefit of an annuity. Providing reassurance and comfort; helping people to slee...

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 Income

Targeted support: FCA rules out specific annuity suggestions

Targeted support: FCA rules out specific annuity suggestions

Firms must signpost consumers to MoneyHelper’s annuities comparison tool

Jenna Brown
clock 30 June 2025 • 3 min read
How annuity underwriting needs to change to meet Consumer Duty

How annuity underwriting needs to change to meet Consumer Duty

'This is an industry systematically delivering poor outcomes'

Andrew Gething
clock 24 June 2025 • 4 min read
Annuities in a post-freedoms world: The need for rebranding and repositioning

Annuities in a post-freedoms world: The need for rebranding and repositioning

‘The challenges facing today’s retirees are intensifying’

Steve Butler
clock 22 May 2025 • 4 min read