Three reasons an Annuity might be the right choice and how to get the best rate

Annuities were never the most popular of options for retirees. Often seen as inflexible and poor value, many were bought begrudgingly by people who thought they had no other option. Since Pension Freedom was introduced, the number of Annuities being bought has dropped significantly. Figures from Retirement Advantage show that around 180,000 have been bought over the past two years. Despite a fall in popularity, there are still many reasons why an Annuity might be the right way of turning your pension into an income: 1.You want a guaranteed income, which ...

Retirement: Plans to allow pensioners to sell Annuities are scrapped

Yellow road sign saying changes ahead with blue cloudy skyThe Government has scrapped plans which would have allowed pensioners to sell their Annuities on the open market, in exchange for a lump sum. George Osborne originally announced the plans in March 2015, as a way of extending Pensions Freedom to people who had already retired. However, the proposal has been widely criticised, delayed and now been scrapped. Announcing the decision, a Government statement said: ““After an extensive programme of engagement with industry, financial regulators and consumer groups, the government has decided not ...

Retirement: Do Annuities still have a part to play?

Yes or no decisionAnnuities have had a tough time over recent years. The general dislike of this particular financial product, can probably be traced back to a time when anyone turning 75 had to buy one. Even though this rule changed many years ago, falling Annuity rates, potential miss-selling and political rhetoric (remember George Osborne’s Budget speech in 2014) have done nothing to improve the image of this most humble of financial products. Finally, of course, we have the introduction of Pensions Freedom, designed to deliver more flexibility in retirement; a word ...

Retirement: Are Annuities dead?

exitusWhen George Osborne announced Pension Freedom some two years ago, many people predicted the end of the Annuity, suggesting that the new found freedoms would make the traditional way of turning a pension pot into an income obsolete. So, one year on from the start of Pension Freedom, has the humble Annuity died the death that so many predicted? New research from Retirement Advantage helps us answer the question, but before we look at that in more detail, it is worth quickly reminding ourselves how an Annuity works. Annuities – the basics In simple ...