Is an Annuity a valid retirement option in 2020?

If you’re due to retire this year, you’ve no doubt been preparing for your life milestone for some time. This preparation might have included a look at the flexible retirement options introduced in 2015 and known collectively as Pension Freedoms. Pension Freedoms have been incredibly popular since their arrival, but what of the traditional option, drawing a regular pension? Annuity rates have fallen over the last few years, a reaction to increased life expectancy and low interest rates. The Guardian recently reported that a 65-year-old man buying a ...

Why Annuities are still worth considering

Four years ago, the biggest shake-up to the pensions industry in a generation occurred. And it’s had a huge impact on the way pensioners access their lifetime savings and retirement lifestyles. Whilst Annuities have somewhat fallen out of favour, they still play an important role in accessing pensions. In the past, purchasing an Annuity was often the only way for pension savers to access their pension. That changed in 2015 and pensioners have eagerly embraced the new freedoms on offer. Data collected by the Financial Conduct ...

Annuities fall in popularity, but could they still be the right choice?

Annuities have undoubtedly fallen out of favour among new retirees, as 75% fewer people are choosing to buy one when they retire, since 2015’s Pension Freedoms reform. (Source: Association of British Insurers ABI) But is that truly because the new options are better? Not according to reviews from the Financial Conduct Authority (FCA), who believe this drop could be due to the marketing of pension products, rather than individual suitability. What do Annuities offer? Naturally, Annuities are more suitable for some people than others, and whether you ...

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 ...