Annuities: Annuity rates fall to lowest level for years

Annuity rates fall to lowest level for yearsA new survey has confirmed what many people who retired in 2012 probably already knew, that Annuity rates have fallen to alarmingly low levels, however, there is some good news for women coming up to retirement. According to Moneyfacts, the financial information provider, the Annuity rate for a 65 year old man plummeted by 11.5% in 2012, the largest drop since 1998 and a massive blow to would-be retirees, who have already had to cope ...

Pensions: Tesco to increase retirement age to 67

Tesco has said it wants to make major changes to its pension scheme, which could see employees retiring later with smaller pension incomes. Tesco, the UK’s largest private sector employer, has started a consultation with staff on changes it would like to introduce to its staff pension; it is likely other UK employers will be monitoring the outcome closely before making decisions about their own scheme. Pension changes The consultation focuses on two main areas, moving the retirement age from 65 to 67 and increasing pension payments in line with CPI (Consumer Prices Index) and not RPI (Retail Prices Index) in retirement. Income from ...

Compulsory retirement at 65 now fully abolished

From 1st October, having been phased out since April, the default retirement age of 65 has now been fully abolished. The Employment Equality Regulations 2011 means it is no longer legal for employers to force employees to finish work at age 65. Employers can still force retirement; however it must be based on other factors, age on its own is not enough. Despite the new legislation research from law firm Norton Rose shows that one in 10 firms will still offer financial incentives or ‘golden goodbyes’ for employees who leave their position at a certain age. Paul Griffin, an employment lawyer with Norton ...

Wealthy Britons want to continue working past retirement age

About 60 per cent of wealthy British people never want to retire, according to a Barclays Wealth survey. Twenty developed economies around the world were surveyed in the poll, which described UK residents who plan on working into their old age as 'nevertirees'. The survey highlighted that 60 per cent of Britons, with over a million pounds in investable assets, want to carry on working for as long as they are able - six and 26 per cent more than US and Swiss residents respectively.