Need to take out a pension with a particular ethical fund in mind. Help please.

Izzy_Skint_2

Thank you again chaps. It's just my humble opinion that I fail to see why purchasing a guaranteed annuity for life is not sold more as an attractive investment option if you live for a considerable time after your retirement, and hence eventually taking more from the annuity providers than you had in your pension pot. Chaps, your last posts don't seem to champion this guaranteed annuity for life aspect of this investment that I am talking about, and as such I have to ask, am I missing something here?

I like the idea of a guaranteed income for life and if this is indeed what you get from purchasing, say, an AVC and then purchasing an annuity upon retirement then I am going to take that option, I just need to be sure on the above point before I take the plunge.

Your thoughts would, as always, be greatly appreciated.

Regards

Graham

EdInvestor

Izzy_Skint wrote: »

Chaps, your last posts don't seem to champion this guaranteed annuity for life aspect of this investment that I am talking about, and as such I have to ask, am I missing something here?

Current level annuity rates are not much higher than cash interest rates, and you lose the capital when buying an annuity.An annuity income may be guaranteed for life but at current rates of inflation that level income would halve in value over less than 20 years.

Annuities were a good bet when interest rates were high,people died fairly young (ie around 10 years after retiring), and guaranteed (eg state) pensions were low. Now rates are low, longevity has increased a lot and guaranteed state pensions (including SERPS) are higher.

Annuities are thus not nearly as attractive as they were. Many people also don't want to gamble on how long they might live.