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Whether we all understand the complexities of the Bank of England’s Quantitative Easing (QE) program or indeed the long term effects it will have the economic recovery and inflation, one thing seems beyond debate, it is reducing Annuity rates.
According to Saga QE has permanently reduced the incomes of one million retirees due to lower Annuity rates. Other figures show that since QE was first introduced in March 2009 Annuity rates have fallen ...
Whether we all understand the complexities of the Bank of England’s Quantitative Easing (QE) program or indeed the long term effects it will have the economic recovery and inflation, one thing seems beyond debate, it is reducing Annuity rates.
According to Saga QE has permanently reduced the incomes of one million retirees due to lower Annuity rates. Other figures show that since QE was first introduced in March 2009 Annuity rates have fallen ...
February 22nd, 2012
Flexible Drawdown was introduced in April last year and after a slow start seems to be gaining momentum, with more and more people taking advantage of the flexibility it offers certain people.
There seems to be three main ways in which people are using Flexible Drawdown, we thought we’d take a brief look at each, showing how you could benefit from Flexible Drawdown....
February 21st, 2012
It seems only five minutes since the Chancellor’s Autumn Statement, but next month will see George Osborne deliver his annual budget.
Cue media speculation and gossip about the changes he is likely to make to your pension.
If the stories in the press over the past few days are to be believed, the Treasury are considering some pretty fundamental changes to our pensions. We thought we’d round these up and look in more detail at what ...
February 15th, 2012
A new report has claimed that the way Annuities are sold is costing retirees billions of pounds each year.
Anyone who has used a pension Annuity calculator in the past few months will be aware of how far Annuity rates have fallen. However a report by the National Association of Pension Funds (NAPF), based on research by the Pensions Institute, has highlighted other issues which are seemingly reducing retirement incomes.
The ...
February 7th, 2012
In our regular feature Seven Investment Management (7IM) look forward to what the month ahead might hold for the world's largest economies.
United Kingdom
Outlook
Issues
The middle of February is when the Bank of England releases its quarterly Inflation Report. In the latest report, we should see the continued assertion of a drop in CPI inflation over the next 12-18 months.
The BoE should finally have some supporting data with which to back up its claims of an ...
February 3rd, 2012
More information has been released about the government’s mortgage guarantee scheme.
First trailed last year as part of a package of measures announced by the government, the NewBuy mortgage guarantee scheme, as it is now known, is aimed at kick starting the housing market, which has been subdued for some time.
The housing minister, Grant Shapps, has announced that the NewBuy scheme will:
• Guarantee mortgages up to 95% loan to value for both first time buyers and home movers
• Be available only on new build purchase...
February 2nd, 2012
As savers and investors seek greater control over their retirement planning SIPPs (Self Invested Personal Pensions) have become more and more popular.
However, on the back of increased FSA scrutiny 2012 is likely to be a year of considerable change in the SIPP market with SIPP providers facing a range of challenges.
We’ve spoken to leading SIPP providers to get their views on what the next 12 months might hold for the SIPP industry, ...
January 30th, 2012
The rental market is booming.
Tight mortgage lending criteria is making it harder for house buyers to get a mortgage and saving the deposit required by most first time buyers these days is tougher than it’s ever been. As a result the buy to let market has seen something of resurgence, monthly rents are rising and in many areas the demand for rental property is outstripping supply.
Lower property prices have also tempted many would be landlords to dip their ...
January 29th, 2012
Any pension Annuity comparison will show how far Annuity rates have dropped in recent months. Statistics showing that Annuity rates have fallen in each of the past four years and by around 40% over the past 16 years emphasise the point still further.
The Annuity problem
Whilst buying an Annuity when rates are low is understandably unattractive, for many people who need the income and want a simple and guaranteed solution the perception is that there ...
January 27th, 2012
We are often asked when the right time to buy an Annuity is.
As you approach retirement, more and more questions will pop into your head:
Should I wait until I actually retire?
Should I buy my Annuity now?
If I wait will Annuity rates have fallen further?
If I buy now will Annuity rates rise in the future?
Will I pay more tax if I take my Annuity whilst I’m ...
January 26th, 2012
