Many advisers are put off recommending specialist phased retirement products to retirees because of the complex nature of the products, say some experts. Too complicated compared to the alternatives of a pension annuity or income drawdown.
The suggestion is that these contracts are not being put forward because many advisers simply don’t really understand them. They are extremely cash efficient because of the tax-free cash component, but they are the most complex and therefore probably the least used contracts.
With them, you can buy a pension annuity or income drawdown plan in stages rather than all at once. Therefore, the product would be increasingly well-suited to those who were considering a staggered entry into retirement.
Seek out advice on this, it could be that phasing your annuity purchase could be right for you.