Pensions - Articles - Pension freedoms are resonating with consumers

 David Macmillan, Managing Director at Aegon UK, comments on the ABI announcement that sales of annuities have fallen by over a third.

 “It’s not surprising that there has been a decline in annuity sales. It shows that the new pension freedoms are resonating with people and allowing them to plan for their future, their way. However, as an industry we must make sure that people have the tools and information that help them understand the trade-off between taking the cash now, and a long term income option. Drawing down a lump sum can make sense for those with a small pot, however people should also think about consolidating their pots if they have small sums dotted around. Our UK Readiness report showed that just 7% of the UK are ready for the retirement they want and although the freedoms are welcome, they will not change this alone. The whole industry must make things simpler and more engaging to and through retirement. Aegon’s Retiready already goes a long way to doing this by helping people understand how ready they are for the retirement they want and by enabling them to consolidate their pots.”