What's the value of an annuity?
This is another consideration which advisers' clients are bringing to the fore, much more now post-pension freedoms than before.
Mr Bamford adds one of the questions that keeps cropping up is: "Should I opt for the financial security of an annuity, even if it means accepting a lower income?"
According to Mr Long, three common questions that are asked about annuities are: "Why are annuity rates so low? When will annuity rates improve? What medical conditions improve my rate?"
For him, it all comes down to the way people want to live in retirement, and whether they can afford the sort of security that a fixed income can bring as part of an annuity.
And this is also a question of risk. Mr Glancy suggests: "People need to consider their attitude to risk. An annuity or pension from a final salary scheme can give lots of certainty by passing longevity risk to an insurer, but this comes at the cost of flexibility potential for inheritance.
"Income drawdown products offer lots of flexibility and potential inheritance, but no certainty."
This is why financial advisers are well-placed to help consumers make the most of these "different building blocks", Mr Glancy says.
Mr Long adds: "We see plenty of questions about annuity rates which underpins our belief that there is huge demand for secure income. It's just people will not buy at any price."
Mr McSweeney elaborates: "While annuities undoubtedly have their downsides, at least with this option individuals are not taking investment risk, and know they will have a guaranteed and sustainable income which will last for their lifetime."
simoney.kyriakou@ft.com
