IFA’s are becoming less interested in pension annuities and advising more that people should opt for more flexible retirement options. Defaqto says the demand from retirees has been for a preference for SIPPs and ISAs, while traditional personal pension products such as pension annuities are becoming less popular. Part of the reason for this is down to altering demographics and adverse economic circumstances.
Research carried out concluded that of the 500 IFAs questioned, just 37% felt pre-retirement savings were the products they advise on the most. This is a fall from 52% in 2008. Some of the most important annuities were enhanced annuities also known as an impaired life annuity. After this, income drawdown was cited as the next most important financial product.
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