The latest data from MGM Advantage on annuity rates has revealed that standard annuity rates have improved in the last few months; unlike the enhanced rates which have dropped.
Recently the government has declared that the income limit for capped drawdown would be raised from 100% to 120% of the value of an annuity.
The Government Actuarial Department rate (GAD Rate) which has been announced today for January 2013 is set to increase from 2% to 2.25%.
The major annuity providers have released gender neutral rates prior to 21st December and My Pension Experts analysis of the early figures show lower than expected drops for male retirees and only a slight increase for woman.
Even though forecasts are particularly low, a pension remains an efficient and easy way to save for the future.
Due to the rise in inflation, food prices and high utility bills, it is difficult to find time or money to save for retirement.
Most retirees choose to purchase an annuity and to receive a regular income, which on paper is fairly straightforward. Annuities were first introduced as a way of curbing retirees spending their pension pots on holidays and Hobnobs and then having to rely on the state pension to survive.
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