Pensions - Articles - Primetime Retirmement echoes calls for drawdown flexibility

 “We fully endorse the views of Andy Bell calling for more income drawdown flexibility. There is evidence that even standard annuities are now providing higher income than the maximum income available, of which 20% of savers take, under drawdown and we believe that a relaxation of rules should bring more tax revenue to the Treasury and get people spending. With gender equalisation fast approaching, we should see a fairer form of drawdown however retirement income providers need to address this new situation swiftly. Primetime Retirement’s plan rates are already designed not to be affected by age or gender.

 
 “Currently the gap between a life term annuity and a fixed term annuity is around 4% for a healthy life and much more for one that is enhanced or impaired (e.g. a smoker, a diabetic, a person with high blood pressure or high cholesterol levels). We anticipate that this may narrow with gender equality as life term annuities would use a new rate that is somewhere in between that of a male and female. It is therefore imperative that both advisers and those in or approaching retirement keep their options open while shopping around for a retirement income product that best suits them – life term annuities are not the only option available.

  

 “We have seen strong demand from IFAs and clients as low annuity rates drive interest in alternatives to conventional annuities including fixed-term annuities. Indeed new research which we commissioned with 321 IFAs showed that 79% of intermediaries mentioned anticipate an increase in the number of clients asking for advice about annuity purchase over the next 12 months while 77% expect the fixed term annuity market in particular to grow in the next two years.”