There are still those in the annuity industry who think the government should scrap the rule that forces individuals to purchase an annuity or move into an alternatively secured pension (ASP) at the age of 75. One expert even suggested it was a ‘blight’ on financial planners.
Annuities are not the only option at retirement, either. Consideration should be given to variable annuities, phased retirement and income drawdown.
A variable annuity has the advantages of guaranteed income, the longevity insurance and the income for life without having to annuitise the pension fund.
So, whether the age 75 rule is changed or not there are alternatives to annuities. Take advice, see if an alternative is right for you.
