The provider says advising on the best form of retirement income is always complex but in the current economic climate, consumers are even more concerned about how to get the most from their pension pot.
Head of retirement income solutions Nigel Barlow says: “The flexibility of USP is on the face of it attractive. It is important to remember, however, that this will only really benefit those with a relatively substantial pension fund.
“Furthermore, the potential for strong investment returns may not always work in the individual’s favour. As we have seen recently, sudden downturns in performance can drastically reduce sustainable income levels for very long and unspecified periods of time.”
He says customers will need at least £300,000 in their pension pot to maximise the opportunities available in USP.
Just Retirement’s new guide is available to all IFAs who sign up for the Campaign for Better Annuities.