The question of “what time should I take my pension annuity” is one which troubles many in or approaching retirement. Much of the thought process that goes into when to take an annuity will be based on the current and future levels of annuity rates. Traditionally much financial advice for annuities argued that it was wiser to leave your pension fund growing and take your pension later as this meant to you would have a large annuity once you retired. But with the lackluster performance of invested funds and equities over the past few years, many have observed that some pension funds have not actually grown at all.
Another point to note is that rates for annuities do not automatically increase as you get older. And if you have Guaranteed annuity rates factored into your pension, you will often get a higher income than from any other provider, even if you shopped around for an annuity. Predicting the future is always difficult but it is wise to review your investments periodically, as leaving your pension to “grow” may not actually result in it growing at all! And waiting for rates to improve is always a risky strategy as it is very hard to predict future trends given the current fluctuations.
