Mike Morrison, head of pensions, AXA Wealth, said:
"With annuity rates at their lowest levels for many years, consumers should be asking themselves whether a conventional annuity, which pays a set amount each year for the rest of their lives, or a more flexible approach is the most appropriate option for them. Following the ONS data published last week forecasting that the number of people who will live to 100 is dramatically on the rise, there has never been a more important time to take control of retirement planning and considering new options is paramount.
"With as many, if not more, years forecast to be spent in retirement as in the workplace for many of us, consumers should consider the new ways of taking an income in retirement, whether that be through new drawdown arrangements or some kind of variable annuity. The ability to deliver a guaranteed minimum payment alongside the potential for capital growth could be critical advantages for many. These are not going to be appropriate for all, but even simple steps likes taking the Open Market Option are often in consumers' best interests.
"The notion of retiring one day and then taking a set income for life has little relevance for many today, and this will only become more widespread in time. Consumers need to seek professional advice to ensure they are securing the flexibility they need in retirement
"In the past, the advice process for retirement was to advise an individual wanting to start drawing benefits of a ‘once and for all solution'. But with time in retirement increasing, that no longer seems to be the case. Retirement is now an ongoing process with perhaps one solution in the early years leading to a second and even third solution some years down the line.
"The idea of drawdown leading to a variable annuity and then to the purchase of a lifetime annuity has not been the norm but could well could well be the in the future."
AXA offers investment and retirement solutions with guarantees through its Secure AdvantageTM Protected Capital and Lifetime Income range.
These plans give consumers the potential to:
-
Grow their investment
-
Protect their investment from market downturns and
-
Secure gains by locking in investment growth annually.
|
