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New FCA data shows just 13pc of savers are choosing to turn their pot into a guaranteed income via an annuity
Nearly nine in ten savers accessing their retirement pots under the pension freedoms are using new flexible arrangements, new data has revealed.
Financial Conduct Authority (FCA) shows just 13pc of savers are now buying annuities to turn their fund into an income in retirement.
• Pension freedoms: 2.2m face charges to access money
• £17m a day withdrawn under new pension freedoms
A total of 178,990 pensions were accessed during the three-month period, and 68pc of these, amounting to 120,969 pensions, were fully encashed.
The remaining 32pc of pensions that were accessed were taken to provide an income.
Most (88pc) of the pensions where the money was fully taken out were worth less than £30,000, the FCA said. Another worrying trend is for the majority of consumers continue not to shop around for the best deals, despite the clear benefits of doing so.
Concerns were raised about the number of people not taking financial advice, or using the Government’s Pension Wise service.

Most people will be better off gradually withdrawing cash from their pension pots rather than buying an annuity to fund retirement – unless they expect to live well beyond 85, according to a new study.

Annuity rates are at an historic low and the forecast is for this to continue, according to Cass. If you die young the annuity dies with you and so you risk wasting your money by annuitising too early.

With careful management, pension pots of £100,000-plus should not run dry until at least the age of 80 or even older – and longer if you opt for flexible rather than fixed withdrawals, says the Cass Business School research.

It says that annuities often prove poor value and that savers should be able to make pension pots last, especially if they seek professional advice.

Dailymail.co.uk

Money makeover: Max Loosli, 60, needs a precision plan to spend his entire pension in his lifetime – without running out of cash first. New “pension freedoms” introduced this year mean that, for the first time, savers such as the Loosli’s are now able to access their pensions as cash, without paying punitive rates of tax.

Telegraph.co.uk

Many feared savers would blow their retirement savings when new freedom rules were introduced, with then pensions minister Steve Webb declaring he was relaxed about people blowing it on Lamborghinis should they so wish.
However, the ABI says retirees are taking a ‘common sense approach.’

Dailymail.co.uk

We’re very pleased to announce that Assured Retirement, the UK’s newest retirement income provider has chosen AMS Retirement for their first portal integration. Our Cash Retirement Account now appears on the Fixed Term section of AMS Retirement.

The Cash Retirement Account, which is a low risk fixed term secured drawdown plan, is designed for those who wish to access their pension savings in a cost effective and flexible manner using the new post-April pension flexibility. It is aimed at low risk investors and only invests in cash deposits with Banks, Building Societies and with National Savings and Investments, so there is no exposure to any investment risk.

The Investment is protected at all times as all deposit takers on the panel are fully authorised to do business in UK by the Financial Conduct Authority and are 100% covered by the Financial Services Compensation Scheme. The mixture of cash deposit accounts are selected so that the interest earned is maximised and mature in time to provide the required benefits. The amounts invested, including interest earned, do not exceed £75,000 with any single bank or building society, thus offering 100% protection at all time.

For more information about Assured Retirement’s product offering please go to their website, www.assuredretirement.co.uk

Assured Retirement present at Westminster and City Retirement Income Options Conference
Assured Retirement have been invited to speak at the Westminster and City 19th Annual Conference on Annuities and Drawdown, a two day event on 25th and 26th November 2015, London Marriott, Canary Wharf, london, E14 4ED

UK.finance.yahoo
Its research showed on average pensioners earn £394 a week compared to the £385 median among the working age population

Telegraph.co.uk
Sales of annuities to pensioners have fallen by almost 90pc since the Chancellor gave retirees the freedom to choose how to spend or invest their pension pots.

Ask an Expert: We look at the best options for passing on wealth held inside a pension

Telegraph.co.uk

Advisers must take action to ensure the beneficiaries of deceased clients are not locked out of the pension freedoms, experts warn. Some older contracts only allow beneficiaries to take pensions benefit as lump sums, which could incur extra tax charges, or a lifetime annuity.
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