Annuities - where do you think rates are going?

dunstonh

Thanks for that. I also wonder how quickly annuity rates respond to increasing gilt yields, such as we have seen in the last few days ?

Some providers have real-time figures. Just retirement, for example. With them, you get the quote in the normal way, but the advisor/broker can then phone them up. They will do further checks to see how things are moved in real time and if there are any margins available.

Others can change within hours. I've seen periods in the past where email notifications about a rate change have come through multiple times over the course of a day.

MetaPhysical

I'm 59 and fully retired and I'm currently using UFPLS/drawdown at the moment rather than an annuity to not paint myself into a corner and to give me options. I do not wish to commit to an annuity just yet although I will probably do so at some point in the next ten years or so when the rates are favourable in the economic cycle.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82137614#Comment_82137614

It is not all or nothing though. If you have a big pot you can buy an annuity with a minor part of it, as part of an overall strategy.
Rates are getting more attractive by the day. If the oil starts flowing more freely again they may fall back, but who knows?