The pension freedoms were designed to prevent savers being forced into buy annuities and figures confirm that for the first time, retirees in Britain are investing more money in flexible pensions than they are spending on annuities. In the three months since the pension freedoms were introduced, savers have funnelled £720m into flexible arrangements compared to £630m which was spent on annuities. The average annuity was purchased with £55,750, while the average fund invested in a flexible pension was £69,900.
Annuity sales peaked in 2012 when savers invested over £14bn, compared to just £1.2bn of savers' money which was invested in flexible arrangements - called "drawdown" pensions. Dr Yvonne Braun, has said: "This is an important reminder that tens of thousands of people are successfully accessing the pension freedoms as intended and on the whole the industry has risen to the challenge of giving customers what they want.” “The data shows people with smaller pots tend to be cashing them out while those with larger pots tend to be buying a regular income product.” If you want help rearranging your pension Enable’s IFAs can talk you through your options.
Issued by: Enable Independent Financial Life Planners 25c North Street, Bishops Stortford, Herts CM23 2LD Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE
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