Chase de Vere welcome the new pension rules, which will provide far more choice, flexibility and financial planning opportunities. However, more choice brings additional complexity increasing the risk that people will make the wrong decisions.

In the past many people have resented buying an annuity and locking into what they perceive to be a poor value and inflexible product.

While they may no longer feel compelled, we urge those taking pension benefits not to give up on annuitiesWe strongly believe that everybody should have secure income to meet their basic living costs in retirement. This will typically come from a combination of the State Pension, defined benefit pensions and, if there is a shortfall, from buying a lifetime annuity with some of their other pension funds.

We are very nervous about people who don’t have adequate levels of secure income to meet basic living costs accessing the new pension flexibilities and taking additional risks that they simply cannot afford to take. They could be gambling with their and their family’s future standard of living.

An annuity won’t be the best option for everybody, but for many people it will be the right choice for at least part of their pension pot to ensure they have enough secure income in retirement. Beyond this they can take advantage of the new freedoms if they want, safe in the knowledge that at least their basic standard of living is protected.

Getting these decisions right is crucial and so those looking to take pension benefits should also look to take independent financial advice.