Only 10% of advisers would look to purchase a pension annuity with the whole amount of their pension savings, according to Skandia in a recent survey. The research also found over half of advisers would use their entire pension savings to go directly into income withdrawal and not an annuity, while 38% would use a combination of income withdrawal and an annuity.

Their reluctance to embrace annuities for themselves has made advisers more likely to recommend income withdrawal to their clients, with 61% of advisers expecting income withdrawal business to increase over the next year. This is a good point to suggest that this is for larger pension pots.

Nearly a third of advisers surveyed felt income withdrawal is appropriate for over half of their clients, while a further half of advisers believe it suits over a quarter of their clients.

The research indicates advisers and consumers are becoming increasingly proactive in seeking to avoid the inflexibility of an annuity, Skandia says.

This entry was posted on Thursday, July 31st, 2008 at 8:18 am and is filed under Annuity rates, General, Open market option. 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.