Annuities: Sales drop as fewer people shop around for the best rate

Annuity Sales drop as fewer people shop around for the best rateNew research has shown a huge drop in the number of Annuities being bought since the changes to pensions were announced in the Budget earlier this year. Amongst an array of sometimes confusing statistics, the data, produced by the Association of British Insurers (ABI), shows: Sales of Annuities have fallen by over a third between the first and second quarters of 2014 In the second quarter of 2013 89,896 Annuities were sold In the same period during 2014 this dropped to 46,368 There were ...

Formula for a happy retirement revealed

Formula for a 'happy' retirement revealedA new survey from Annuity provider, LV=, has revealed the formula for a happy retirement. LV=, formerly known as Liverpool Victoria, surveyed 1,070 people aged 60-65 and found that ‘happiness’ in retirement will cost nearly a quarter of a million pounds, around seven times the value of the average pension pot in the UK. According to the people who took part in the survey the formula for a ‘happy’ retirement is: To retire at the age of 65 and live in a detached house, ...

Pensions: Labour to “restrict pension tax-relief”

iStock_000024336538_ExtraSmallEd Balls, Labour’s Shadow Chancellor, has announced he will look to restrict the tax-relief paid on some pension contributions should there be a change of Government in 2015. Contributions to pensions currently attract tax-relief. Basic rate tax-payers receive 20% relief, effectively turning an £80 contribution to £100; higher rate tax-payers can claim back additional amounts subject to an overall cap in contributions. Higher rate tax-relief to be abolished? However, the merits of higher rate tax-relief has been continually debated and it now seems Labour are set ...

Annuities: ABI launch new ‘Annuity window’

iStock_000016457256_ExtraSmallThe Association of British Insurers (ABI), which represents many Annuity providers, has launched a new service designed to encourage would-be retirees to shop around for the best Annuity rate. The ABI’s specimen Annuity rate tables , which forms part of the wider Retirement Choices Code, are not designed to be best buy tables or even an Annuity calculator, but to highlight the options retirees have and the need to shop around for the right Annuity for their own individual circumstances. Not enough shopping around Over ...