is it better to put off buying an annuity until interest rates rise?

Longwaterlady

My husband will 65 and retires in a few months. He has had some serious health problems but we hope they are sorted following major operation. He may wish to work part-time following retirement date if he can find something suitable. Would it be wise to put off buying an annuity if we can manage on my salary for a while as there may be better deals in future?

dunstonh

Would it be wise to put off buying an annuity if we can manage on my salary for a while as there may be better deals in future?

I think it is fair to assume that as interest rates rise, the effect on gilt yields will see annuity rates rise. How much will depend on how quickly they rise. If he has protected rights in his pension then also delaying until April 2012 when protected rights are abolished could be an option. There is also the unsecured option which may be appropriate if death benefits are an issue.