Have we reached peak annuity rates?

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81987888#Comment_81987888

I did it approx and it said our household inflation rate was 3.2%.

As our combined pensions went up around 3.5% minus 20% tax = 2.8% and our cash savings are generating around 4%+ ( no tax ), then pretty much standing still ( ignoring the jump in DC /investments values recently) .

michaels

https://forums.moneysavingexpert.com/discussion/comment/81987910#Comment_81987910

Thing is although you have index linked DB and SP these are actually falling in real terms due to the income tax threshold freeze which will hit your spending power just as much as the increase in the price of food and energy.

RogerPensionGuy

I was just reviewing this thread and enjoy reading it yet again.

I was dithering and dithering for a long time and finally saw the best gross output on MoneyHelper about six weeks ago and then got a few quick re~quotes from a few brokers/IFAs I had been in contact with these last few years and I'm aware MoneyHelper isn't a purfect system, but I found it runs pretty close to broker/IFA offerings.

One broker/IFA offered me the best gross output and it was actually just a few pounds PA different than MoneyHelper and I accepted the offer to secure that deal and the money transfer to the insurance company from my SIPP looks like it will complete inside the annuity quote.

I'm advised when the cash transfer is actually completed, my broker/IFA will do a quick re~quote and whichever offering is best they will use and that will be the deal done and payments will begin.

I have done plenty of research and am going ahead with this current annuity, but I'm concidering then keeping my old SIPP as a stby tank or maybe just use that last value in SIPP and do another annuity possibly with a different % indexing or protections if I should expire in the early years.

For information I've used 70% of my SIPP to buy this annuity and obviously 30% leftover to dither on this next period of time.

All the above just for information.

But I'm interested in any current views to the opening posters question of are we at peak annuity rates now and if people feel they will go up or down at this point of time?

Like always, thanks in advance for any comments and views.

Cheers Roger.

*********

I've been going over the previous quotes in fine detail and viewing the charges and can now much more easily see why my return was always different altho offer was always the same insurance company, the broker IFA I'm using fees are just 25% the fees of the lowest output I was offered, apparently average fees can be between 1% to 1.6% in my situation, broker IFA I'm using is way less than 1% and the highest offering fees were more than 2.6% I guess I should not be surprised.

The output and data below looks to indicate that the end of April 2026 was a high point and that is the time I jumped of the dithering tree. I was temped to fully empty my SIPP, but decided to use 70% on a RPI deal and just leave the 30% to cook and do with it what I want in the future.

I'm aware gross returns roll up as we age, I used all the information I found and just felt it was/is a good time to take the plunge.

***

https://www.sharingpensions.co.uk/annuities-2026-yields-april-record-high-as-trump-threatens-strikes-and-annuity-rates-rise.htm

dunstonh

The output and data below looks to indicate that the end of April 2026 was a high point and that is the time I jumped of the dithering tree. I was temped to fully empty my SIPP, but decided to use 70% on a RPI deal and just leave the 30% to cook and do with it what I want in the future.

I'm aware gross returns roll up as we age, I used all the information I found and just felt it was/is a good time to take the plunge.

***

https://www.sharingpensions.co.uk/annuities-2026-yields-april-record-high-as-trump-threatens-strikes-and-annuity-rates-rise.htm

Based on data up to the 22 May 2026, the peak was the 15th of May.

ali_bear

I just took one out and while the transaction seemed to take forever I feel like I've got a good rate.

Rates have been going up since I made the application and the deal I finally got closely matched the best quote in that period.

RogerPensionGuy

https://forums.moneysavingexpert.com/discussion/comment/82011804#Comment_82011804

Thanks for the info, if rates were going up during application, did you get a better offer than the original offer?

I have been advised my offer quote is valid till early June, when all paperwork is in position and funds with the insurance company, my Broker/IFA will get a re-quote, if new quote is better the new quote will be used.

However if they are not ready until after the early June quote expiry, a new/re-quote will done and higher or lower, this will be the final offer, if it goes up, happy days, if it goes down unhappy days and I can obviously pull the plug, but I will pay the Broker/IFA charges as that's what I agreed. They tell me they expect it will all be sorted by next Monday or Tuesday and a few days before quote expiry(I hope)

ali_bear

https://forums.moneysavingexpert.com/discussion/comment/82012025#Comment_82012025

Yes.

It took three weeks for the letter to arrive (!) from the provider confirming the details and final amount/rate. Thanks Royal Mail. Hopefully your local delivery office is better staffed than mine.

mrklaw

can you take out an annuity to start in X years time?

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82012292#Comment_82012292

There was whole thread on that a while ago.

Short answer is No

Long answer is with an IFA you may be able to have an annuity inside your SIPP and only start to take the income out of the SIPP whn you want the pension income to get into your hands.

DRS1

I think this may be the thread

Can I buy a deffered annuity now? — MoneySavingExpert Forum