Recent cuts to interest rates have hit pensions hard, affecting particularly those who want to retire on a regular income. But there are other options available. Here are Aegon's top tips for people choosing flexible drawdown...
The Bank of England cut interest rates to 0.25% in August, meaning now is probably the "worst time ever" to make a retirement income decision, according to pensions director Steven Cameron. However, it is a particularly bad time for those seeking a regular income in retirement, such as an annuity, which saw rates falling to an all-time low, Aegon said. While the security of an annuity will remain the best option for some, there have been a host of other products available since the government's pension freedom reforms in 2015. One of the most popular options has been flexible drawd...
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