Providers have reduced their annuity rates in response to the referendum result, but what does this mean for your pension?
The decision to leave the EU has led to annuity rates falling, but the question is, will they continue to fall?
Whilst we cannot predict what future annuity rates will look like or whether they will continue to fall or increase, we can be sure that by purchasing an annuity, you are guaranteeing an income for your entire future.
That’s because an annuity is a guaranteed, regular income which you obtain from an insurance company using your pension fund. The insurance company then pays you a secure income for the rest of your life.
Research by Age Partnership suggests the average 65 year old with £50,000 will lose about £75 a year. Not a huge amount, but with the potential that rates could fall even further, buying your annuity now means you could receive additional income every year for the rest of your life.
Annuity rates have been dropping steadily over recent decades, and it would appear that the effect of Brexit has given new momentum to that trend. So, for anyone that is planning to buy an annuity in the immediate future, it could make sense to do so sooner rather than later.
If you are unsure of the best way to access your pension savings, you could consider using a service which allows you to look at all your options to ensure you are going to get the best deal.
As always, we suggest you make sure you shop around for the most competitive terms for your personal circumstance before committing to a deal. Using a service which takes into account your lifestyle choices and health can be hugely beneficial to the amount you could receive from an annuity, for example.
Age Partnership is the number one provider of exceptional customer service within the financial sector, as independently assess by Investor in Customers, and as a result has thousands of trusting customers. They provide their customers with access to a wide range of solutions to access their pension savings.
Age Partnership’s annuity service allows you to compare the whole market with one phone call. They will take your health and lifestyle choices into consideration when matching you with a provider in order to get you the best annuity rate and by doing so, they could secure you up to 40% more income from your pension savings.
The good news is, if you already have an annuity you will not be affected by any fall in rates, as the income has already been guaranteed. Nor should you be affected immediately if you have already received a quote for annuity as most providers guarantee their quote for a period of time afterwards.
Age Partnership believe that people who are at or approaching retirement deserve to get the best out of life and have tailored a range of financial solutions specifically for the over 55s. To find out more about their services visit their homepage or contact the customer services team on 08080 555 222.