“Firstly, we must re-frame our relationship with annuities and be more creative with the role that these can take in flexible retirement strategies. The industry must seek to leverage the PPI’s retirement archetypes to design products that fit the differing needs and desires of future retirees,” she said.
“Secondly, we should challenge ourselves on the range of investment pathways that currently exist; adding new ones that are combinations of both drawdown and a guaranteed income at a pre-specified age.”
She added that the industry needs to “raise the bar” on how individuals are supported in making retirement decisions, “from the first time they access their savings to a more ongoing basis”.
“Action must be taken by the industry to recognise the importance of not only providing the right retirement products to match the needs of their customers, but also offering help to guide and advise them in how to best use flexibility to achieve better retirement outcomes.”
Benjamin Mercer is senior reporter at Pensions Expert, FTAdviser's sister publication
