There has been a surge in pension advice enquiries Post Budget 2014.

The diversity of potential products available post-retirement was encouraging people to seek advice.

Credencis say: “Annuities remain an inflexible solution, and you no longer own your pension pot. One of the great benefits of the Budget was that more people are now aware of alternatives, such as income drawdown, and want to fully understand all of their retirement options.”

Part of the reason for the shift away from annuities has been the low income they offer. In 1995, a 65-year-old with a £100,000 pension fund could have received an annuity of £11,380 a year. Today it would be approximately £4,920.

However because annuity rates and gilt yields were inextricably linked, once gilt yields rose again, annuities should rise also, making them more attractive.

If a client still required a fixed income guarantees through retirement, annuities are still the best option.

Credencis say: The best thing about the Budget was to encourage people to pay money into pensions again. Pre Budget – A lot of people have been reluctant to put money into pensions due to the income restrictions when it comes to getting the money out.

“We are already seeing evidence of people being a lot more comfortable with making pension contributions and with greater amounts now that they believe they will get their money more easily in retirement.

“I think we will also see more people taking a blended approach to retirement income with an annuity being purchased to provide a secure lifetime income with part of the pension pot and a more flexible income with the rest.”

Credencis provide bespoke pension advice to help you make the right choice in retirement.

Contact us on 01158967538 or via our website.


“Live for today, Invest for tomorrow”