The old problem of making a finite amount of money last a lifetime, however many decades that may be, has not gone away.
Most people have regular bills to pay and could benefit from at least their basic needs being covered by secure income, so they never have to worry about running short.
An obvious point from today’s figures is that although shopping around has increased to record levels, still too many people are missing out and too many are not receiving enhanced rates.
The amount of pension that buyers spend on their annuities is now far higher than before pension freedoms – the average premium is around £80,000. But even those with smaller pots need it to generate the most cash they can.
The ABI reported a 66 per cent rise in sales of enhanced annuities, but it remains less than half of the market by premium, pointing to more money being left on the table.
The fly in the ointment is that the ABI reported only 29 per cent of annuity buyers are using professional advice.
We also know that take-up of Pension Wise, the free, independent and impartial guidance service, could be greater too.
This low figure remains a real worry considering the amounts of money involved, the complexity of the decisions being made, and the real probability of harmful outcomes that only manifest themselves over many years or decades.
One final thought: it is good to have some actual figures to work from. Pension freedom and choice was a massive change that, in other countries that have adopted similar approaches, has resulted in both winners and losers.
Nearly a decade into the experiment, it would be good to know how it’s shaping up and check we are not heading for a bumpy landing.
Stephen Lowe is group communications director at Just Group
