Annuities: Annuity rates set to fall?

iStock_000015874214_ExtraSmallAfter increases to Annuity rates in the first half of the year, prospective retirees, many of whom may have delayed their Annuity purchase in the hope of a higher rate, will be left disappointed if predictions that Annuity rates are set to fall come true. Annually, around 400,000 people buy an Annuity with their pension. An Annuity provides retirees with a guaranteed income for life, although over the past few years a number of factors have pushed Annuity rates lower: Increased longevity, we’re all living longer Low ...

Will the ABI’s sample Annuity rates help retirees get a better retirement income?

Crumpled question marks heapYesterday saw the latest initiative from the Association of British Insurers (ABI), to help increase consumer understanding of Annuities and how to get the best retirement income. An Annuity is the most popular way of turning a pension into an income at retirement; indeed some 400,000 are taken out each year. However, too many retirees are still buying their Annuity from the same company with which they held their pension. Potentially losing out on thousands of ...

Annuities: As Annuity rates pick up, should you defer your Annuity purchase?

As Annuity rates pick up, should you defer your Annuity purchase 150pxWhilst Annuity rates were falling the decision when to buy an Annuity was simple, most people did so as quickly as possible. But with rates starting to rise, albeit slowly, is there a case for delaying your Annuity purchase in the hope of a higher income? Annuity rate rises Let’s start by looking at what’s happened to Annuity rates so far in 2013. During the first few months of the year rates stayed pretty static. But over the ...

Retirement: Annuity rates fall, Income Drawdown limits up, time to consider your options?

Time to consider your optionsAnyone who is close to retirement will probably know that Annuity rates have dropped significantly over the past few years; during 2012 alone figures from MGM Advantage show a fall of 11.7%. At the same time the maximum income which can be taken from an Income Drawdown plan has increased as a result of rising gilt yields and will increase by a further 20% due to a change in the Income Drawdown rules announced ...