Pensions - Articles - Partnership comments on ABI statistics

 "Following the announcement of the Pension Freedoms in March 2014, many put their retirement plans on hold until they could access the funds in their pension pot. These figures clearly show that while the wave has crested and those with smaller pots (£15,500*) have taken the cash, others are still looking to convert their retirement savings into an income.

 “Following the dire predictions of a year ago, it is good to see that retirees have chosen to use £630 million worth of pension savings to purchase a guaranteed income in the form of an annuity and a further £720m to buy drawdown policies. When asked, 64% of people say they want a guaranteed income in retirement so we believe that annuities have an important role to play in this brave new world.

 “One small cause for concern is that fewer people than hoped appear to be shopping around despite the introduction of the Pension Wise guidance service – this is definitely something we hope to see more of in the future. As the market settles into a more normal pattern and we begin to see more new products launched, it will be interesting to see how it develops going forward.”