Recent comments from pension expert Dr Ros Altmann state that the falling level of annuity rates will potentially cause serious issues for annuitants in the future. The comments follow the recent publication of the Pensions Policy Institute (PPI) report, which indicates that trustees will have to commit up to 15% of their income to a retirement fund is order to maintain a desirable living standard in retirement.
Dr Ros Altmann did stop short of arguing that rates for annuities would have a “large affect” on retirement incomes. ”This kind of statement is, I fear, potentially misleading,” she said. It is argued that the key factors are not the overall value of a pension or the contributions made, but the income that can be gained in retirement.
With rates for annuities being on a downward trajectory over the past fifteen years, it is more important then ever that potential annuitants shop around between providers for the best deal for them.
