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12-Mar-08 11:10 [Pensions]
Calls made for pensions choice There are alternatives to annuities for those seeking a lifetime income for retirement, the Investment Managers Association (IMA) has argued.
New research from the trade association shows that there are a number of alternative investment routes which can provide better levels of lifetime income.
Speaking ahead of the budget, IMA chief executive Richard Saunders said: "The arguments in favour of compulsory annuitisation do not stand up and the time is now right for a new debate about the decumulation phase, giving consumers access to greater choice."
In its research paper, the IMA argues in favour of a number of income drawdown strategies which could be used to fund retirement.
Although it acknowledges that drawdown and investment strategies involve risk, and will therefore not be suitable for everyone, the IMA argues that the potential returns – combined with sensible regulation – could prove superior to annuities.
Mr Saunders added: "Diversification is the key to investment before retirement, and it has an important part to play after retirement too."
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