Hi everyone,
thought I’d try and bring you a little cheer and as spring begins to blossom into early summer, as with everything – a little sunshine goes a long way. If you’re enjoying your retirement already and planning a round of golf or sneaking off to cast a fly on your favourite loch or chalk stream you already know what it means to be favoured with a good retirement income.
If you’re not quite at that point yet, today’s piece is a little update on what you’ll buy with your pension fund when it matures – mostly that means an annuity.
One upside of the credit crunch is that annuity rates are now at a five year high. Insurers are involved in a rate war with 17 rate rises in the last month alone, with 88% of them propelling upwards. According to Nigel Callaghan from Hargreaves Lansdown the pensions analysts, the yield for a 65 year old male is now 7.66 per cent, 11 per cent higher than the yield 2 years ago which was 6.92 per cent. Product providers fighting for the top spot include Prudential, Legal & General and Scottish Equitable.
(The value of the investment can go down as well as up and you may not get back as much as you put in. Past performance does not guarantee future growth or income).
