We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Annuities

Pablootes
Pablootes Posts: 8 Forumite
First Anniversary First Post
in Pensions, annuities & retirement planning
Would anyone now give annuities serious consideration?
Rates are now over 6% for a flat annuity at 65 and over 5% at 60.
Totally aware of the problems of annuities but the benefits now seem much better.
Rates will also probably increase as the BoE continues to increase the base rate.
«1345

Comments

  • Billxx
    Billxx Posts: 311 Forumite
    Sixth Anniversary 100 Posts Name Dropper Photogenic
    I wouldn't.  I still prefer the flexibility of a draw down.  I have a reasonable pot which would provide a decent sum on an annuity basis (more than I currently draw down).  Also I guess I am lucky, I have enough of a cash reserve to see out a rough period with the stock market and drop in the value of the pot.  Interesting to see what others say.

    Kind Regards,

    Bill
  • dunstonh
    dunstonh Posts: 121,292 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Would anyone now give annuities serious consideration?
    Yes.   We did a quote for someone the other day that was just over 6% with value protect (return of unused fund).   We didnt proceed for the time being but we are getting close to the tipping point.

    Totally aware of the problems of annuities but the benefits now seem much better.
    what problems?    There are positives and negatives of any option but I am not sure what problems there would be. (maybe problem was the wrong word?)


    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • westv
    westv Posts: 6,608 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Maybe more will go with part DD part annuity.
  • westv
    westv Posts: 6,608 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Pablootes said:
    Would anyone now give annuities serious consideration?
    Rates are now over 6% for a flat annuity at 65 and over 5% at 60.

    Presumably most (??) will want joint life rather than single life annuities.
  • Pablootes
    Pablootes Posts: 8 Forumite
    First Anniversary First Post
    dunstonh said:
    Would anyone now give annuities serious consideration?
    Yes.   We did a quote for someone the other day that was just over 6% with value protect (return of unused fund).   We didnt proceed for the time being but we are getting close to the tipping point.

    Totally aware of the problems of annuities but the benefits now seem much better.
    what problems?    There are positives and negatives of any option but I am not sure what problems there would be. (maybe problem was the wrong word?)


    Yes , wrong choice of word.
    Meant shortcomings rather than problems 
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Yes, I'd consider using some of your pot to buy an annuity. You can combine it with SP to provide a foundation of safe income and then be aggressive with the rest of your money. Now that rates are creeping up an annuity could be a reasonable way to diversify a retirement portfolio.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • squirrelpie
    squirrelpie Posts: 1,689 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    The current bout of inflation is a good reminder of the shortcomings of flat rate annuities.
  • Kim1965
    Kim1965 Posts: 550 Forumite
    500 Posts Second Anniversary Name Dropper
    The current volatility of the markets is deeply unsettling to many people entering retirement with little investment experience 
  • westv
    westv Posts: 6,608 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    squirrelpie said:
    The current bout of inflation is a good reminder of the shortcomings of flat rate annuities.
    Depends what rate you get it at. 
  • Pablo7474
    Pablo7474 Posts: 192 Forumite
    Third Anniversary 100 Posts
    Pablootes said:
    dunstonh said:
    Would anyone now give annuities serious consideration?
    Yes.   We did a quote for someone the other day that was just over 6% with value protect (return of unused fund).   We didnt proceed for the time being but we are getting close to the tipping point.

    Totally aware of the problems of annuities but the benefits now seem much better.
    what problems?    There are positives and negatives of any option but I am not sure what problems there would be. (maybe problem was the wrong word?)


    Yes , wrong choice of word.
    Meant shortcomings rather than problems 
    What shortcomings? 
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.4K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.4K Spending & Discounts
  • 247.3K Work, Benefits & Business
  • 604K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture