Converting a Final Salary Scheme to a Pension Scheme
April 9, 2009
Have you ever considered using an annuity instead of a final salary pension scheme? It may prove to be financially beneficial.
Annuity transfer rates have been increasing and the PPF (Pension Protection Fund) is coming under increasing pressure. On top of this there is always the threat of companies going bust, so now could be the ideal time to move your nest egg over to an annuity scheme. Although it will mean waving the chance of a guaranteed income, a annuity based on the capital markets means that a fund could pick up low priced stock and shares which could increase when the economy recovers.
Annuity Rates fall as Bank of England base rate falls
April 7, 2009
There was further glum news for retirees looking to increase their income during retirement – falling Bank of England interest rates mean that annuity rates are also falling Some of the best annuity returns from the likes of Norwich Union (Aviva) have fallen significantly. This shows just how under pressure some of the main lenders are, and how people’s retirement funds are falling at an alarming rate.
Speaking more specifically, indexed linked annuities fell as well as smokers rates from £615 to £7199. Experts believe it is imperative for those seeking a pension annuity that they shop around to find the best deal as this could make the difference of thousands of pounds over the course of the annuity payout.