Pension calculator provider Standard Life highlights potential flexibility

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Pension calculator provider Standard Life highlights potential flexibility

Fri 3rd Sep 2010

Standard Life has suggested the annuities market could be made more flexible if the government removes the age 75 restrictions, which are currently the subject of a consultation.

Andrew Tully, senior pensions policy manager at the firm, claimed there has been plenty of innovation in the sector in recent years.

In his view, this trend will continue if the state removes the requirement to annuitise at 75 years old, which he believes will add flexibility to the process.

"Annuities are valuable, as they provide a guarantee of a certain level of income, however long an individual lives. Their downside is their inflexibility, as people need to make a once and for all decision," explained Mr Tully.

He stressed that anyone willing to take on extra risk could opt for income drawdown, particularly as it offers better death benefits and greater flexibility.

Recently, research organisation Towers Watson announced that the value of variable annuities sales increased by 34 per cent in the first half of the year compared to the same period of 2009.

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