Key comments on the first twelve months of pension freedoms

“There is still a number of cautionary notes, the first regarding the core cash withdrawals and the cluster of these being taken out by those under age 60. We do not yet fully understand the impact later, if any, of this behaviour. Secondly we are yet to see the impact for those invested in income drawdown products, both in terms of income withdrawal levels and also the impact of the turbulence in the markets during 2015. Time will ultimately tell but the signs are clear that the annuity still has a very real part to play in providing secure guaranteed lifetime income, with greater product flexibility and extended guarantees, many are content to exchange the temptation of greater access for the security of a guaranteed income.”