Pensions - Articles - Education vital as annuity sales continue to plunge

 Speaking about the fall in annuity sales, Stuart Price, Partner and Actuary at Quantum Advisory, said: This is no surprise given the new freedoms introduced in 2015 and the current expensive cost of buying an annuity with an insurance company due to the continued low level of gilt yields.

 “The main concern with taking a pension as a lump sum is that individuals spend all of their retirement savings and then struggle in the later years of their retirement. We always knew this would be the case when the new freedoms were introduced in 2015.

 “Individuals need to be educated as to the importance of having some form of secure or guaranteed income in retirement on top of the benefits they will receive from the State; and both the Government and the pension industry need to do more to address that gap in education.

 “The pension industry is taking some positive steps to increase awareness and engagement, with measures such as Pension Awareness Day taking place on September 15th, which Quantum fully endorses, with the aim of helping both individuals and employers to take positive action around pensions.”