Annuity rates, worth a look?

trickydicky14

I have recently read favourable reports on current annuity rates and wondering if this dead horse has risen from the ashes? Is it becoming a viable option again?

68 years old, no big health issues with a pension pot of 130K, any ballpark figures.

I also have a reasonable S&S ISA and cash savings.

NedS

Rates are rising, whether an annuity is right for you will be a personal decision. There are plenty of websites that publish standard tables of set rates. For example:

https://www.hl.co.uk/retirement/annuities/best-buy-rates

which should give you a ball park indication of the rates you are likely to get. Obviously annuity rates are personal to your circumstances and there are many different types of annuity available (level, fixed rate, or index-linked, with our without partner protection etc).

Most people here recommend using an IFA when purchasing an annuity as they are often able to secure better rates for you.

bostonerimus

One bright spot in this economic turmoil is that annuity rates are creeping up. Of course 10% inflation is still a big negative factor on any income plan, but we can hope that inflation will go back to low single figures so now might be a good time to lock in a decent annuity rate. You need to come up with a budget and a retirement income plan and see if an annuity fits into it. IMO securing some base level of income with partial annuitization and SP will be a good approach for many people.

dunstonh

I have recently read favourable reports on current annuity rates and wondering if this dead horse has risen from the ashes? Is it becoming a viable option again?

It was never a dead horse.  It was just affected by low interest rates and low inflation which resulted in low gilt yields.  

Annuity rates have been viable for some people for some time. The recent increase in gilt yields have improved the annuity rate although there have been reductions in the last week or two.