Public acceptance of forced annuitisation has almost halved in the last seven years, according to Skandia.
The firm’s annuities survey found that 30 per cent of people thought forced annuitisation was acceptable compared with 57 per cent in 2001. Seventy per cent of the 1,000 consumers surveyed thought it was unacceptable to be compelled to buy an annuity.
Skandia has designed an income drawdown simulator tool which helps advisers to construct drawdown portfolios, select withdrawals and track fund values for clients.
Head of pensions marketing Nick Bladen says: “The concept of forced annuitisation is clearly still unacceptable to a significant group of people so advisers have a crucial role to play in opening up other options to their clients.”