The overhaul of the retirement market promised greater freedom for all pensioners, and a raft of new products was expected to arrive to cater for them. So much of the preparation has felt rushed, not least from the government’s own side. The details surrounding the guidance guarantee have been constantly shifting since the initial announcement, and full details of the implementation were only made available with weeks to spare.
Against this backdrop, it is no surprise that the anticipated slew of products has largely failed to materialise. As such, the onus will once again fall on advisers to adopt innovative approaches and ensure their clients make the most of the possibilities.
Annuities are expected to dwindle as a drawdown enjoys greater reach and range of existing income-producing products will come into play in retirement planning.
It remains to be seen how many individuals take advantage of the freedoms, or whether the majority will continue to fall back on the familiar security of annuities, however disappointing the rates.