I write articles about all aspects of retirement income, especially annuity and drawdown. I also regular appear in the national press and occassionaly on radio and TV.
Is it a good time to purchase an annuity?
“Is now a good time to purchase an annuity”?
The thinking was that now fund values have increased since the March 2020 crash it might make sense for some people, especially those with relatively small drawdown pots, to purchase an annuity.
I understand from several annuity providers that annuity sales have increased significantly so it will be helpful to see if there is a case for purchasing annuities at the moment.
Engage with advice
I want to help people make the right decisions at retirement but it seems many people don’t want to help themselves by properly engaging with advisers.
In the old days (whenever that was), people were more open to taking advice and more trusting of experts but nowadays many people have a closed mind to advice and don’t necessarily trust advisers. This has not happened overnight but has crept us on us over the years, but the lack of engagement has been accelerated by events such as RDR which created the so-called advice gap and by changing attitudes and customer behaviour.
The big picture – There is an advice gap and some people think the answer is robo advice
What's the problem? – Just like the exams, robo advice relies on algorithms but these can disadvantage those who are less well off
What can de done? – Looks at ways to get real people involved with the advice process.
Ali Hussain wrote a very good article in the Times newspaper on Saturday 18th July in which he highlighted the commissions paid on non-advised annuity sales
I helped Ali with this article by providing some annuity quotes and giving some comments.
The article explained how although financial advisers were banned from being paid commission in 2013, the ban did not apply to brokers who sell annuities and some types of pension drawdown without giving advice.
Investing is like farming
Much has been written about how advisers and their clients have reacted to the recent crash in global financial markets. The first reaction is to tell clients that there is no need to panic but this may come across as patronising unless there are good reasons to stay calm. No need to panic There should be no need to panic if an investment portfolio is set up correctly in the fi ...
Fixed Term sales
The big picture – Fixed term income plans are popular because they don't lock people in for life.
What's the problem? – Lifetime annuities have a poor reputation because of miss-selling. Could fixed term suffer the same fate?
What can de done? – Make sure they are sold / advised properly e.g. end commission bias.
When we talk about risk most people automatically think about investment risk. However, important as it is, this is only one of the risks that you need to watch out. Managing retirement risks There are many other different risks you should take into consideration during your retirement. These range from the risk that you might be too cautious and therefore get locked into low r ...