Annuities are still an essential part of the retirement mix

Despite the attractions of trivial commutation or alternatively secured pensions annuities are still the most financially-efficient way of providing income in retirement

One of the major changes to pensions legislation in the new simplified regime was the removal of compulsory annuitisation for those with pension funds. Despite all of the controversy that surrounds alternatively secured pensions (ASP) it will undoubtedly be chosen by some people who feel it is a way of passing their pension fund on to their children. These are primarily the people who have saved too much in their pension funds and therefore do not feel they need the income from the pension funds. For most people with pension savings, an annuity is likely to form a key part of their retirem...