The latest inflation figures for the UK have shown that the consumer price index (CPI) now stands at 5.4%, the highest annual reading since records started in 1997.
And with inflation set to increase and eat away at pensions, financial planning firm Continuum believes there is likely to be a growing number of advisers recommending annuities.
According to the Financial Conduct Authority (FCA)’s retirement income data, 40% of pensioners withdraw from their pots at an annual rate of 8%.
Continuum said that by entering drawdown in cash and withdrawing at such a high rate, savers risk running out of money.
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