It may have taken the regulator a long while to catch up, but most in the industry have known for years: annuities do not offer great value.

In truth, they haven’t represented good value for a while – and all the competition studies in the world will not fix some of the underlying problems relating to depressed gilt rates and ever-increasingly longevity.

For those with a bit of cash in their pension fund – and most advised clients would probably fit a broad application of that description – there is another way: income drawdown. Similarly subject to income caps, this options does at least offer greater income potential and more flexibility, in return for greater investment risk and the associated uncertainty

Not for the faint-hearted or under-funded, it is being seen as a better option for larger numbers of would-be retires.

This special report will investigate for whom the option of drawdown is appropriate and whether a third option is needed for a group of lower-middle savers; what uptake of flexible drawdown says about this most dexterous of options; and which products advisers should look to for clients.

This special report is sponsored by Aviva. For product information, click here. http://www.ftadviser.com/r/FT%20Publications/FTA/FTAdviser/Assets/Pdf/AR01226%20sales%20aid%20(1).pdf