73% of experts say annuities will remain 'key' in retirement planning

A poll of pension experts has found that 73% expect annuities to remain a key part of retirement planning. The survey by Broadstone Corporate Benefits post-Budget found that nearly three quarters of its trustees and sponsoring employers expected annuities to remain a key part of the retirement planning process despite the Budget reforms.The company's survey on the recent changes to pensions found 100% support for the government's decision to increase flexibility.However, despite the move to axe the obligation to buy an annuity in retirement some 73% expected annuities to remain a key part of retirement planning and 68% anticipated defined benefit members will be tempted to take their transfer.Some 90% believed that individuals would act prudently in retirement and 14% supported a government ban on transfer from defined benefit to defined contribution.David Brooks, Broadstone's technical director, said: "The wide-ranging changes mean that trustees and sponsoring employers need to move from 'wait and see' to taking action.{desktop}{/desktop}{mobile}{/mobile}"Top of their list should be the need to review their default investment strategies to ensure that they remain relevant for the majority of their members. This is especially so when typically 96% of the members make use of the default strategies."We found that trustees were happy to facilitate extra flexibilities, but did not want to end up running drawdown facilities during the retirement/ decumulation phase of savings."He said sponsoring employers should also review the benefit structures in their defined benefit schemes to ensure they remain fit for purpose in the changing world.He added: "By reviewing the schemes' benefits employers could realise long-term cost savings as members have access to the fullest range of options possible. In many cases rules will need to be changed and this work should begin sooner rather than later."

73% of experts say annuities will remain 'key' in retirement planning

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