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Retirement Advantage is warning that despite the renewed popularity of annuities following the introduction of pension freedoms, out-of-date myths about the product continue to abound. The company is urging people to get professional financial advice before making any decisions about their pensions. |
Andrew Tully, pensions technical director at Retirement Advantage, commented: ‘The pension changes have created huge interest in the market, and companies have responded with new product options. The annuity, the only sure fire bet of a guaranteed lifetime income, has also received a make-over, which has addressed many of the concerns people had about the product. ‘However, the message that annuities have changed isn’t well known unless you receive financial advice, which could potentially mean people ignore them because of out-of-date preconceptions. It’s important that retirees are fully aware of the value annuities provide. And it’s vital that everybody receives professional financial advice so they can make the best decisions for their personal circumstances.’ Retirement Advantage has compiled a list of the top 8 pre-conceptions that those approaching retirement have about annuities:
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