Summary
ANNUITY rates are at an all-time low, which is bad news if you are heading for retirement. Most people buy an annuity, which pays a guaranteed income for life, with the bulk of their pension fund when they retire, but rates have plummeted.
Billy Burrows, director of Better Retirement Group, says: "Annuity rates have been falling almost continuously since 1990. Back then, the annuity rate for a 65-year-old man was more than 15.5%; today it is less than 6.5%, a fall in excess of 50%. In August, annuity income fell by more than pound(s)300 a year, or 5%, making this the largest monthly fall on record."See the full content of this document
Extract
Avoiding Annuity Anguish
The plunge in rates is largely down to the increase in demand for UK gilts, issued by the Government to raise money. Global investors spooked by economic turmoil have been buying UK Government gi...
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