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‘Guaranteed income for life’ is top priority for retirees

Lucinda Beeman
Written By:
Lucinda Beeman

A guaranteed income for life is still top priority for retirees despite Chancellor George Osborne scrapping the requirement to buy an annuity in this year’s Budget.

While the death of the annuity industry has been widely forecast following the 2014 Budget – which gave retirees greater flexibility at retirement – a survey of 2,000 people by Partnership found that the individual features of annuity products are still in demand.

According to the annuity provider, 64 per cent of respondents said a guaranteed income for life would be the top attribute of the ‘perfect retirement product’, 31 per cent wanted as much income as possible and 24 per cent placed emphasis on finding an income that kept pace with inflation.

Andrew Megson, managing director of retirement at Partnership, said: “While the recent Budget announcement has been hailed as the death knell for annuities, it is interesting to see that the features most people want from a retirement product are essentially those offered by a best buy standard or enhanced annuity.”

Annuities are structured to be as tax efficient as possible – a requirement for 21 per cent of respondents.

Meanwhile, 14 per cent wanted to secure an income for their partner after their own death and 12 per cent felt it was important to leave an inheritance.

Running out of money was also a concern, with 15 per cent of respondents seeking a product low-risk enough to ensure that they would never lose their entire nest egg.

Megson said: “This clearly highlights the fact that, rather than attacking the industry as a whole, we need to concentrate on helping people to make the best choices for their own individual retirement needs.”