Annuities: Rates at their lowest ever level

Annuities: Rates at their lowest ever levelHot on the heels of Pensions Freedom, pensioners who still want to buy an Annuity have been dealt a blow, as new research has revealed Annuity rates have fallen to their lowest ever level. The research from Moneyfact has found that standard Annuity rates have fallen by 5.9% for a 65 year old with a £10,000 pension pot and by 6.4% for someone with a larger £50,000 fund. A 65 year old with a £50,000 pension pot, will now be able to secure an income around ...

Retirement: Government expects people to make “wrong choices”, 7 ways to avoid being one of them

Government expects some people to make the “wrong choices”, 7 ways to avoid being one of them?2014 has been a momentous year for pensions, with possibly the biggest changes in a generation announced. However, according to the man overseeing the new rules, Pensions Minister Steve Webb, some pension savers will “make the wrong choices” and end up less well off in retirement. Speaking at a recent conference Mr Webb said: “"This coming April some people will get it wrong. They will make the wrong choices. They will get a worse outcome than ...

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 ...

Annuities: Why shopping around for the best rate is still important

Why shopping around for the best rate is still importantSince the Budget, when it was announced that from April 2015 people will have complete access to their pensions once they hit 55, the press has been awash with stories that Annuities are dead. Many experts, including here at Investment Sense, disagree and believe that an Annuity is still the right option in many circumstances, more of which later. For those people who still want to buy an Annuity when they retire, new research has shown why it is still vitally important ...