Compare Annuity Rates and increase your pension income
March 8, 2010
Comparing rates for annuities is absolutely essential if you are to get the best deal on your pension. The fact that only around one third of people bother to compare their annuity offer with other providers is pretty scandalous. Moreover, many of these people may not only be being offered rates that are lower than rival insurers, they also may not be being offered the enhanced rates that they could be entitled to. The Daily Mail have today published their excellent “Five Golden Rules” regarding pensions and one of them is quite rightly advising potential annuitants to shop around for the best deal.
Sales of Enhanced Annuities reached record levels in 2009
March 8, 2010
According to Towers Watson, sales of enhanced annuities reached a record level last year. For 2009 the sales totaled £1.8bn, which was a rise of 24% on the 2008 figure of £1.4bn. The fourth quarter of last year was particularly strong for enhanced annuities, with sales of £478.8m recorded. This compared with third quarter sales figures of £415.8m. The company also disclosed that since 2001, the percentage of UK annuity sales that were enhanced has doubled. Andy Sanders who works for Towers Watson said that “…2009 was another record year for enhanced annuity sales and means more consumers are benefiting from higher pension incomes because their medical condition or lifestyle has been assessed and a lower than average expectation of life anticipated.”
Is there a crisis for potential Annuitants?
March 7, 2010
Some money websites today are discussing the notion that there is a crisis for those seeking a pension annuity. Falling interest rates and quantitative easing have meant that rates have fallen over the past two years, with stock market turbulence causing pension pots to have not grown significantly or have stood still in many circumstances. Some experts have also cited the fact that middle-class savers could be the worse hit as more affluent areas tend to come off less favourably in terms of rates offered - as many insurers now use people’s postcodes to help determine life expectancy rates. This has been criticised in some quarters as being nothing more than a ‘postcode lottery’. However with the gap in life expectancy up to 13 years when comparing West London to West Glasgow, some argue this is a wholly legitimate tool for the insurance companies.
Act quickly to secure current Annuity Rates
March 3, 2010
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.
Where can I get the best Penion Annuity advice?
March 2, 2010
It is not uncommon for the vast majority of people to be confused about pension annuities. You can hardly blame them given the complexities involved. Annuities are generally something that you will only ever buy once. This means that people don’t tend to bother to find out what they are all about until it comes to the point when they have to buy one. Moreover not only do people have confusion over what annuities are, they don’t realise that to get the best deal, you have to shop around between providers.
Will my Pension Annuity be enough to live on?
March 2, 2010
This question is something that potential annuitants will be asking themselves up and down the country. The best way to try and answer it is to first get the best annuity quote you can (by shopping around providers) and then work out how much you will think you will need in retirement. For the majority of us that means having less spending power than when we are working, but hopefully some major outgoings (such as a mortgage) should be paid off by then.
Delaying an Annuity purchase could cost you thousands
February 28, 2010
If you are aged fifty and you are thinking of cashing in your pension then experts are advising that you should act quickly. This is because on April 6 2010, the minimum age for taking your pension will rise to 55. And the process of sourcing and purchasing the right pension annuity can take up to three or four weeks. If you do not meet this deadline it could cost you thousands of pounds, because the money you will get by cashing in your pension at an earlier age could turn out to be a significant amount.
Should I choose an Inflation-Proof Annuity?
February 28, 2010
As you might expect from it’s name, an inflation proof annuity protects annuitants against the rise of inflation. Although you can build in annual increments under a standard or conventional annuity, these are not guaranteed to match the level of inflation. An inflation-proof annuity will keep its value throughout the lifetime of the annuity as it is linked to the RPI (Retail Prices Index). Any annual rises in inflation will be matched by a rise in your annual income.
What is a Conventional Annuity?
February 28, 2010
A conventional annuity, often called a ‘lifetime’ or ’standard’ annuity is in the UK, the most common pension annuity product. These types of annuity are popular because you will know from day one of the scheme just how much income you will receive each year (before deductions) for the rest of your life. This security allows annuitants to plan their lives and living standards accordingly.
Lifetime Annuity or Income Drawdown…How about a Fixed Term Annuity?
February 28, 2010
Those approaching retirement may be toying with the choice of either purchasing a lifetime annuity or instead opting for income drawdown. These tend to be two of the most popular choices when it comes to deciding on what to do with your pension pot. However, you could well find that both these options could cost you in the long run. It must be said that taking a lifetime annuity does provide stability and a guaranteed income for the rest of your retirement. Which is why around half a million annuities are bought every year in the UK.