Millions of pensioners are missing out on a better retirement by shunning annuities and keeping their money in “drawdown” accounts for too long, new research has suggested.
Since the 2015 “pension freedom” reforms, sales of annuities – which pay a guaranteed income for life – have plummeted by about 90pc. Instead, most people keep their pensions invested into retirement and live off the returns.
But analysis by LCP, a consultancy, suggests that there is a “crossover age” at which buying an annuity “makes you happier” than being exposed to the vagaries of the stock market.The magic age varies according to your […]
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