Let's Talk About Annuities

Editor's Views: Why we shouldn't downplay the risks of investing through retirement, the importance of looking beyond economic moats, and when inspiration strikes too late

Holly Black 19 February, 2021 | 10:52AM

Editors viewsd

No one talks about annuities anymore. The introduction of the Pension Freedoms in 2015 were hailed as a new era in retirement planning. The new rules meant individuals no longer had to trade in their pension pots for an annuity at retirement age but could take the reins, keep their money in the market, and be in charge of their own financial future.

Which all sounds pretty wonderful, doesn’t it? However, that sales spiel does rather neglect the fact that staying invested through retirement and managing your own pension pot is not only incredibly complicated, it is incredibly risky. It ignores that fact that, for many people, an annuity really is still the best solution.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Holly Black  is Senior Editor, Morningstar.co.uk

 

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