Pensions - Articles - Annuity now or annuity later?

 Scottish Life, the pensions specialist business of the Royal London Group, is highlighting a flexible solution which advisers may want to consider when faced with a common retirement problem.

 Fiona Tait, Business Development Manager at Scottish Life, says:

 "Traditional retirement is changing. People need more flexibility when it comes to their retirement options. Taking an annuity immediately on reaching 60 or 65 is not the right option for every client."

 Key issues in today's retirement market include:

 -people are living longer in retirement; their income needs will change over time
 -annuity rates are around the lowest levels in 20 years
 -protecting annuity income against future inflation can be expensive
 -buying an annuity is a final decision; there's no way back.

 Fiona Tait explains:

 "Although there are risks involved, and it isn't suitable for everyone, income drawdown can be useful as a flexible alternative for many people, bridging the gap until they are ready to purchase an annuity.

 "As the market's top provider1, Scottish Life has created a unique, new income planning tool for advisers to use."

 The income planning tool is:

 -easy to follow, with a compliance-friendly process
 -designed to assess a client's attitude to risk and capacity for loss
 -able to support the adviser's ongoing review process.