This report from the FCA highlights that since the pension freedoms, people do seem to be using all options available in the new freedoms; taking cash, using annuities and drawing down.

This has been our experience too, with a number of clients wanting to use annuities to cover essential spend and then relying on income drawdown for more flexible income needs.

It is essential however, that as well as understanding the different choices under the pension freedoms; which to use and in what proportion, staff are made aware of what to look for and how to find and select both the best annuity and drawdown solutions for their circumstances and needs. Employers can help with this by providing those approaching retirement with financial education and access to advice.