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 ...

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 ...