Pension Specialist (Retired)

I have not read John or Helen's pieces in depth, but I certainly prefer the annuity shape over pension fund withdrawal (PFW) anyday. Those who scorn or dismiss annuities either have an axe to grind or are plain misinformed. Those in the know - actuaries, accountants, etc - favour annuities for themselves whereas creative types generally will take a bit of a gamble on PFW in their stride. The main misunderstanding about annuities is that there is only one type - conventional annuity - when in fact there are at least 6 with up to 3 providers allowing you to remain fully invested beyond age 75; one until age 90. Those favouring PFW do not seem to understand, or be able manage,equity investment risk alongside income withdrawal risk. Those products providing guarantees, at exorbitant cost, are in real trouble with at least one USA based provider retreating back to their homeland. As for the age 75 rule, no-one is complelled to buy an annuity as ASP remains in place, however with increasing longevity, 75 could easily be moved to 80 or even 85. I have former clients who are determined to exhaust their pension pot by age 75, then start on the rest of their capital for income post-75. For these type of people, plain and simple PFW (at minimal cost) is ideal, but something like Canada Life's AGA or L&C New Open Annuity is ideal because this pushes up the invested phase to age 85.

Posted by: Bernard Footitt

Mr

I do not trust Annuities,as also banks, and am relying on the 75year rule to track the aledged average life expectancy, as I am now over 65 years.

Posted by: P. Willis