Annuities: Which way now for Annuity rates? We ask the experts

Crumpled question marks heapUnless the Government does the mother of all U-turns, people over 55 will get unprecedented access to their pensions from next April. The proposed changes have lead many people to suggest that Annuities are effectively dead. Frankly, we think that’s rubbish and potentially dangerous. For people who want a simple solution, with no investment risk or need for ongoing management and a relatively attractive return, an Annuity is likely to be the right option....

Budget 2014: All you need to know about the changes to your pension

All you need to knowGeorge Osborne stunned pension savers, financial advisers and Annuity providers alike, with his proposals in the Budget, that from April 2015 it would no longer be a requirement to provide an income from a pension and the whole fund could be taken as a lump sum. So what’s changed? How will you be affected? Is it good or bad news if you are close to retirement? We’ve got all the answers. Let’s start with the basics, ...

Annuities: Fed up of “greedy” Annuity providers? Then consider other options

iStock_000008982661_ExtraSmallA couple of weeks ago the respected financial Journalist, Dan Hyde, revealed the results of a Daily Mail investigation into the profit margins of Annuity providers. To many people, the findings of the investigation were surprising: “Based on insurers’ own predictions, they claim to make £6,500 profit from every £100,000 of savings. But this assumes savers always pick the very best deal and live until they are 90.” “In reality, on average someone turning 65 this year will die when they ...

Annuities: Where now for Annuity rates?

Crumpled question marks heapPension Annuity calculators show that rates have recovered slightly so far this year but if you are retiring soon, don’t get too excited! The latest figures from the MGM Advantage Annuity Index, show average Annuity rates increased by 3% in the first three months of 2013, the first quarterly interest for two years. However, the good news soon comes to an end, with revelation that over an average retirement of 18-years, a pension fund of £50,000 would now provide £10,224 less income ...