Advisers back risk-managed funds over annuities for retirement income

Risk-managed funds will overtake annuities to become the preferred retirement income strategy over the next decade, according to an Aegon adviser survey.

The provider said only 2% of the 200 financial advisers questioned thought annuities would still lead the market in 2025. One in three said they believed risk-managed funds would take their place over the next ten years. However, Aegon's own research has found guaranteed income is still highly important to retirees. Its second Readiness Report, released last month, found two in five people (40%) still want guaranteed retirement income, with an additional third saying they were likely to opt for a combination of guarantees and cash lump sum. Aegon said it was likely flexible guara...