The volatile state of the pension annuity market is leading some employees feeling confused, according to one pension expert. Richard Strachan from AON consulting oberved that annuity rates have been falling in 2009. In addition to this rates, have been fluctuating, adding further confusion those thinking about just when to retire. Many of those on the brink of retirement may be considering delaying retirement as they feel they will not be offered favourable rates.
Rates for annuities have been declining steadily for the last 15 years, but there have been pockets of increases,particularly in 2007 before the recession. The rates are based on investment performance and the yields from government gilts. If you are thinking of taking out an annuity, seek professional financial advice, and always shop around between providers. With rates as they are, it is imperative that you do this!
