While a flexible combination of annuity and drawdown sounds like it would be popular, data suggests at the moment this is still a nascent area.
The FCA’s data comprised more than 170,000 sales and the regulator made it clear how minuscule the sales of blended solutions can be.
The paper said: “They are a niche product with only 0.1 per cent of the total sales.”
Yet Mr Burrows comments that people who have taken income as well as moving into drawdown “seem to have made sensible choices” – suggesting for some, a blended solution could be the most appropriate route for them.
How advisers have behaved
A spokesman for LV comments: “An adviser’s role is to help their client throughout their retirement planning to achieve the right level of capital and appropriate level of income, with appropriate certainty, balanced with flexibility.”
Kim Lerche-Thomsen, founder and chief executive of Primetime Retirement, says advisers have been well placed to meet the growing numbers of people needing help with their retirement options post-freedoms.
He comments: “Advisers can use their knowledge of the retirement market to assess which available products best meet the requirements of their clients.”
However, Mr Lerche-Thomsen adds that, because the range of options and products offered has expanded post-pension freedoms, this can make it more challenging for advisers.
Therefore, he adds: “It is vital advisers keep abreast of industry trends and changes in the market to find the best solution for their clients.”
simoney.kyriakou@ft.com
