News and blog

Changing Retirement Market

Not sure if anyone read The Times at the weekend but I would like to draw your attention to an excellent article published on Saturday 4th December. The article focuses on the changing retirement market and related issues – a key summary is below but I’ve attached the full article for your to read – some interesting stuff.

Not sure if anyone read The Times at the weekend but I would like to draw your attention to an excellent article published on Saturday 4th December. The article focuses on the changing retirement market and related issues – a key summary is below but I’ve attached the full article for your to read – some interesting stuff.

Declining annuity rates

  • In 1990 a £100,000 pension pot would buy a pension of £15,640 per annum (15.64%)
  • In 2000 the same pot would have bought a pension of £9,120 per annum (9.12%)
  • In 2010 the pot would currently buy a pension of £6,270 per annum (6.27%)

(*figures based on a male aged 65, single life, source DMP financial research experts)

Life expectancy has increased dramatically

  • In 1981 a male age 65 expected to live to 79
  • Today he can expect to live to 87
  • Annuity providers annuity payments have increased 50% due to longer lives


Improved choice of retirement options

  • Annuities have changed offering enhanced & impaired rates but once purchased you cannot changed/adapt.
  • Drawdown added true income flexibility, improved death benefits and tax efficiency but there is still market risk.
  • Flexible or variable annuities offer income certainty, improved death benefits and access to market growth while protecting against market drops.

 

View Article page 1

View Article page 2

Hide comment form Hide comment form
 
  • 1000 Characters left
   
 

Bookmark This

RIS Tweets

Chancellor George Osborne sets date for next Budget https://t.co/IQYPKD5Rh0 https://t.co/EYAqyzRfAf
'Degree needed' to fathom financial small print https://t.co/WFVSUdgUO1 https://t.co/bpNyPQ7Nnd
Older borrowers may be offered mortgages into their 80s and 90s https://t.co/XkPykV0TUR https://t.co/AqKZwmxMRO

Contact us

Retirement and Investment Solutions
5 Lancer House, Hussar Court
Waterlooville
Hampshire, PO7 7SE

T: 01489 878300
F: 0870 0104883
E: advice@retirementis.co.uk