Rates for pension annuities could be about to fall down again after a positive start in 2010, according to financial experts Alexander Forbes. They have noted that concerns in the currency market could mean that rates could be on the way down. There has been a mixed bag in the annuity market of late, although level annuities have remained stable or have risen, Canada Life has recently seen falls in its level and inflation-linked rates. Alexander Forbes Annuity Bureau say this could indicate that the rest of the annuity market could be about to suffer.
For the best deal on a level annuity, you should goto Aviva who are offering an annual income of £6,420 for a 60-year old man with a pension fund of £100,000. Another type of annuity that has not seen any falls yet are smoker annuities with Reliance Mutual appearing to offer the most lucrative rates of £7,023 per year for a 60-year old male smoker with a £100,000 pot.
Tim Whiting who works for Alexander Forbes Annuity Bureau noted that there was concern over global debt that would filter through to the annuity market. He said that…”….there are worrying signs that rates may not remain steady for much longer. Canada Life may well have reduced its rates for its own commercial reasons, but over the long term demographics and gilt yields are likely to combine to cause rate fluctuations“
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