Have we reached peak annuity rates?

RogerPensionGuy

Posts above from dunstonh, OldScientist & Nebulous2 are super helpful, thank you all.

I did like the phrase moron premium and think it's very valid, the government did indeed come to power at a particularly awkward time and probably needed a more firm direction of policies and keep to the policies espically considering its majority.

Unfortunately the initial 16 months has gone very awkwardly and is now sitting between a slippery rock and a slippery rock.

I don't think there's any magical bunnies avaliable at the next or soon following budgets unfortunately, so the next few years look messy and low confidence. 

For my personal situation the current annuity rates seam to fit well and will probably buy a couple in the next 4 or 6 weeks is my feeling today. 

My SIPP provider has just produced all the paperworks to remove my remaining TFLS and I'll ask them for quotes and pop to see an IFA I saw last year. 

Tks again to 3 posters above, very informative and pretty similar to what is in my head. 

Cheers Roger. 

dunstonh

I did like the phrase moron premium and think it's very valid, the government did indeed come to power at a particularly awkward time and probably needed a more firm direction of policies and keep to the policies espically considering its majority.

It's a phrase used by the markets.  It came into existence following the Truss budget.  Sunak managed to reverse some of the moron premium as the markets considered him a safer pair of hands.   However, the moron premium returned under the current Government due to its failed attempts to reduce benefits whilst at the same time increasing public sector spending and then increasing the wrong taxes (where increases can result in less tax take).       

This Budget will be crucial, as it will signal to the markets whether the government intends to exacerbate the problem further or indicate a shift in policy direction.

As nobody here knows what the Budget is going to be, you have to make a judgment call.  Ultimately, the odds of you picking the peak point are low.      However, you are at 17 year highs.  Any increases are not likely to be large.  So, is it worth the risk of delay if you can achieve your objectives now?

RogerPensionGuy

Reference the moron factor, I don't think it can be fixed at a single budget, so I expect that factor to remain very much in the markets over the next 8 to 12 months minimum until that view is shifted. 

Looks to me like they over promised on too much stuff, continually talked it down and then not just under delivered, they achieved more debts chasing savings, foot shooting at every opportunity.

And altho I like catching a falling or bouncing knife, I normally miss it, history will reveal how lucky I am on this endeavour, but matters not as I'm locking in to certainty and that's what I want way before age 70.