Annuities - An Investment?

zagfles

Thrugelmir wrote: »

I'm well off wishing to retire. Though monitor annuity rates on a quarterly basis to follow the trends. Currently I could swop my SIPP for a near 6% yield annuity (guaranteed for 10 years). There's no where to my knowledge that I can obtain a guaranteed fixed income of that level by investing in either Gilts or Blue Chip Corporate bonds. By waiting in time then the yield can only increase, aided of course by the envitable future rise in interest rates.

(Appreciate that the income has no inflation index linking).

Err, yes. And?

I think you've been comprehensively whooshed.

kidmugsy

Here's a fascinating idea for exploiting one of the strengths of annuities without actually buying an annuity. It's a sort of modern tontine.

http://www.theactuary.com/features/2018/08/pooling-pensioners-resources/

Terron

kidmugsy wrote: »

Have you considered whether it might be worthwhile not claiming your tax-free lump sums, instead taking the 10.6% on them too?

Has the annuity got to be Single Life?

I've not considered taking a tax free lump sum from the GAR pensions. I will be taking ones from other larger pensions/


Other annuity options are available at current rates.