Percentages

ader42

The financially illiterate friends of mine are going the annuity route as they “don’t trust the stock market”. 
They’d rather get 4% a year until they die (RPI escalating) than acheive x% themselves leaving a pot to be inherited.
Madness in my eyes but to each their own. 

Cairnpapple

Aha I found the webinar slides so I didn't have to go through the webinar again. Financial literacy was measured by answering a number of financial questions correctly (e.g. reading a bank statement) so sounds like a relatively low bar.  People who had taken financial ADVICE were more likely to do drawdown than people who hadn't had advice. 

https://ifs.org.uk/publications/what-do-pensions-freedoms-mean-financing-retirement

sgx2000

Great answers again everyone....
Time to watch the video..

Hoenir

ader42 said:

The financially illiterate friends of mine are going the annuity route as they “don’t trust the stock market”. 
They’d rather get 4% a year until they die (RPI escalating) than acheive x% themselves leaving a pot to be inherited.
Madness in my eyes but to each their own. 

How many people actually fully understand the stock market?  Easy to hold a superficial view that it's effortless to make money by investing in it. 

Universidad

Exodi said:

I'd have thought this would be the other way round, as individuals who are less financially sophisticated tend to avoid the stock market. Annuities are very simple to comprehend... they pay you a defined amount of money till you die.

Yes, but until recently what was simple to comprehend is that you would give them, for example, a quarter of a million pounds, and they would throw you a bit over ten grand every year. And a quarter of a million pounds has a lot of persuasive power, even if you don't intend to blow it.