A with profits annuity. This is an annuity product where policyholders can receive an income linked to a strong with-profits fund, providing them with the further potential to receive additional income not possible under a conventional annuity. So retirees can potentially benefit from the increased returns available from stockmarket returns, while still guaranteeing a base level of income.

However, with-profits annuities can be tarred with the same brush as some other with-profit-based products from certain providers. Even accepting this, with-profit annuities are the right choice for some who are looking for an increasing retirement income, and what this really highlights is the need for professional independent advice when planning for and approaching retirement.

Despite over 50s admitting that they are more worried than ever about their financial situation as they approach retirement, the LV=, a leading pension annuity provider, State of Retirement Report revealed that more than half (56%) of this pre-retired group have yet to seek professional financial advice at all about their overall financial situation. This majority equates to 5.5 million people across the UK, indicating a real opportunity for financial advisers.

There also seems to be a gap between what people discuss with financial advisers and perhaps what their actual needs might be. Of those over 50s who have already consulted a professional about financial advice, ISAs are the most popular topic, with 43% of this age group discussing ISAs, followed by low risk investments (30%), general pension planning (28%), and inheritance tax planning (20%).

This entry was posted on Saturday, August 23rd, 2008 at 3:18 pm and is filed under with profits annuity. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.