Expert outlines case for annuities

The primary attraction of buying an annuity policy is the piece of mind such an agreement can afford, one expert has made clear.

Martin Bamford of the Informed Choice company suggests that while some people may prefer the flexibility of controlling their own investments, others opt for the security of a reliable retirement income.

The question of which retirement funding plan is the best for each individual depends entirely on each person's circumstances and the risks they are prepared to take with their own cash, Mr Bamford concludes.

"The main advantage to the annuity route is very, very simple; you buy an annuity at a given rate and you know which level of income then to expect for the rest of your life," he said.

A disproportionate number of British women are failing to save for their own retirement, a recent study from Scottish Widows concluded.