Pensions - Articles - Partnership comments on ABI figures

 Mark Stopard, Head of Product Development, Partnership commented on today’s ABI Annuity Figures:

 “Today’s pensioners face some of the hardest choices for generations as they choose whether to wait and take advantage of the new freedoms or using existing products to plan their retirement. The latest figures from the ABI clearly highlight that enhanced annuities are increasingly finding favour with those who want a guaranteed lifetime income which takes into account their personal medical or lifestyle circumstances.

 “While some pundits have suggested that those with medical conditions will simply choose to cash in their pension pots, these figures indicate that people are actually taking a more prudent long-term view. Enhanced annuities can be the lowest cost solution for people looking to secure a guaranteed level of essential income in retirement and today’s figures highlight that many understand this point.

 “Although today’s figures do show some positives, there is some cause for concern if you look at the marked difference between internal and external sales. Not only are internal sales only down by 12% (- 40% for external) but just 8% of internals sales are for enhanced annuities (59% external). This does seem to suggest that some providers are ‘making hay while the sun shines’ and a number of retirees could receive significantly less income in retirement than they deserve.”