Advice in later life has changed dramatically in the last two years, following the arrival of pensions freedom and the liberation from the need to buy an annuity.

But, in truth, the world had been changing anyway. Longevity has increased dramatically in the past 20 years, so that when a person came to plan for their retirement, they had to think of 20 years plus rather than just five or ten.

This has had a big impact on the demands made on the state pension system, which the government has already been trying to address.

But for those with additional private pensions, life has become more complicated. If one is on a defined benefit scheme, then retirement income is more predictable. However, most people are on defined contribution schemes, which are far less predictable.

Pension freedoms may have released people from the predictability, and limitations, of annuities. But they now face a huge number of choices, and uncertain variables – such as lifespan – with which to make them.

The pensions and asset management industry have stepped in to offer alternatives, and the appeal of income drawdown has stretched far beyond its usual sphere of operation. The prospect is appealing – why not make the best use of the stock market returns rather than lock oneself into a certain set of economic variables that may become out of date after five years?

But, as this year has shown, stock markets can be volatile. The challenge for many clients and their advisers is how much of one's pension can one take as income, before taking too much to sustain the rest of the fund?

The answer, as many are finding, is in a mixture of products – some drawdown, some annuity, and constant review over the course of one's retirement of the original pension pot, the rates available and direction of the markets.

In the brave new world of later life advice, with an ageing population, retirement planning has become a lot more interesting.

Melanie Tringham is features editor of Financial Adviser