Retirement income products with guarantees, offered by many life companies in the UK as an alternative to the old fashioned annuity, do not offer value for money in most cases, according to a study by Milliman, an international consultancy group.
Almost half of British savers withdrawing money from their pensions may be doing so at an unsustainable rate, according to analysis by asset manager Schroders.
Some British savers are withdrawing too much cash from their pension pots and are at risk of running out of money within a decade or less, the Association of British Insurers (ABI) has warned.
Terms such as ‘uncrystallised pension funds lump sum’ and ‘flexi-access drawdown’ could be phased out if a new guide to make pensions language simple, clear, and consistent is adopted.
Nearly £6bn ($8.6bn, €7.6bn) has been paid out of UK pensions since reforms came into effect in April last year, according to the latest figures published by the Association of British Insurers (ABI).
The number of people taking advantage of the new pension freedoms dropped by 13.3% between the third and fourth quarters of 2015, with the total value of funds released down by nearly a third.
Investment platform Cofunds has launched a new feature to help financial advisers better monitor and manage their clients’ decumulation strategies.
Standard Life has come up with a new toolkit to help financial advisers prepare tax efficient retirement income plans for clients paying UK tax and making use of British allowances wherever they are located.
More than half of the funds being invested under the new pension freedoms have been invested in income drawdown products, with the remainder buying annuities, reports the Association of British Insurers (ABI).
Clients wishing to move from QROPS into a UK-based scheme to take advantage of pension liberation should take heed before rushing into income drawdown.
Axa Wealth is to capitalise on the upcoming UK pension reforms by launching a plan which combines the benefits of an annuity and an income drawdown product.
Axa Wealth will scrap regular charges for both its pension products and drawdown services available via the Elevate platform.
