Annuity rates falling
An annuity is an insurance product linked to pension planning that guarantees to pay out an income for life.
Since George Osborne announced in the 2014 Budget that there was to be a major Pension Reform, the average annual income payable from an annuity has been on the decline and figures from data company, Moneyfacts, suggests the drop is as much as 5.7% for a standard annuity.
For other circumstances this decline is more – an annuity held by a 65 year old with a £50,000 pension could have dropped by almost 6.5%.
There is no longer an obligation to purchase an annuity following April 2015, when the Pension Reform came into play.
The news of this decline instills unease amongst pensioners who, are already aware that their pension pots are likely to not provide them with the comfort they desire for a lengthy retirement, which is more likely now due to increased life expectancy.
Figurit take into account pension planning along with comprehensive tax planning. To discuss an existing annuity or get connected with a specialist financial adviser who can help you with your pension planning, call our team today.
020 7376 9333
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