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 ...

Annuities: Why delaying your Annuity purchase could be very costly

iStock_000006992053XSmallAs Annuity rates show signs of increasing, many would-be retirees might be tempted to delay their Annuity purchase, but new research shows this could prove to be a costly mistake. Figures from Annuity provider MGM Advantage, show that the lost income resulting from a two year delay in buying an Annuity, could take between 37 and 41 years to recover; well above the remaining life expectancy of the average retiree. Delaying an Annuity purchase As gilt yields have started to rise and Annuity ...

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 ...

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 ...