Lack of trust blocks pensioners benefiting from annuities

Lack of trust blocks pensioners benefiting from annuities

Lack of understanding and low levels of trust are among the reasons people don’t buy annuities in retirement, even when they could benefit, research has found. The introduction of pension freedoms in 2015 has seen the number of annuities purchased plummet from 353,000 in 2013 to just over 60,000 in 2020/21, according to a briefing note by research charity the Pensions Policy Institute (PPI).

Annuities are purchased with retirement savings and then provide fixed payouts for life.

People underestimating how long they will live and negative perceptions of annuities are further reasons behind why some retirees are reluctant to buy, the […]

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