The worm has turned

Retirement income

An annuity is the best way to generate an income in retirement, and now people can use value protection to pass on the unrealised value of their fund to family

Assuming an individual does not leave pension planning too late and they are realistic about the amount that needs to be saved, almost all aspects of the accumulation phase act in their favour, as follows: the long time horizon allows a relaxed attitude to risk as losses can be recouped; asset allocation decisions are straightforward; pound cost averaging is, for the large part, very much the saver's friend, capturing volatility in a larger fund; the ability to pay contributions in regular form makes the process relatively painless; and a review every so often, until within five o...