Current financial crises - pension options

ivavoucher

Current financial crises

Does the state of the economy at the moment make it more attractive to buy annuities early rather than go for unsecured pension?

Thanks

EdInvestor

Annuity rates are linked to interest rates, which are now trending downwards.The stockmarket tends to react positively to lower interest rates meaning that share prices should rise from current levels.

On the other hand, ordinary annuity rates tend to be on a long term declining trend due to increased longevity and the removal of the impaired life group from the general pool.If you delay, that might be balanced by your increasing age of course.

dunstonh

Annuities have been increasing again in recent years. The yields on gilts and fixed interest funds has been increasing but so has the risk (on bonds, not gilts). So, it will be interesting to see how annuities react.