Annuity rates have halved in 15 years
Those looking to retire in the short to medium term in the UK will face a nightmare scenario with news that annuity rates have halved over the last 15 years. This unprecedented fall in annuity rates will have a direct impact upon the lifestyle and the finances of many in the UK who are coming up to retirement over the next few years. So what are the options?
Unfortunately the options for many future pensioners in the UK are limited to either working beyond their 60s and 70s or selling their family home and other assets to maintain their lifestyle. In reality we will see more and more UK pensioners fall into the poverty trap as the value of the UK state pension comes under more pressure and continues to fall in value in real terms. Those who had planned for their retirement 10, 20, 30 years ago with the impression that annuity rates would be double the rate they are today will be dismayed to find that their financial planning has now "gone out of the window".
It is impossible to underestimate the problems within the UK pension industry and the problems for those retiring in the short to medium term. There are also concerns regarding the long-term situation with many believing that the recent shift in the pension industry, and pension rates, is here to stay.
Share this..
Related stories
Lloyds bank gets the go-ahead from Alistair Darling
A nod and a wink from the Chancellor of the Exchequer Alistair Darling would appear to have given Lloyds bank the opportunity to raise significant funds from existing shareholders and escape the clutches of the government's toxic asset protection scheme. For some time the management of Lloyds bank have been looking to exit the scheme due to the massive premium required to protect "dangerous assets...
Read MoreIs Ken Clarke the Tory Party's secret weapon?
At a time when David Cameron needs all the help he can get it is evident that Ken Clarke is coming more to the fore with many party members pushing him forward as a spokesperson on the economy and the spending habits of the Labour Party. Despite the fact that George Osborne is the shadow Chancellor of the Exchequer it is noticeable that he has been very quiet on the economy over the last few days....
Read MoreTaxing unhealthy foods 'could save lives'
Adding value-added tax (VAT) to unhealthy foodstuffs could improve Britain's health, medical experts have claimed. Researchers from Oxford and Nottingham universities have published a study in today's Journal of Epidemiology and Community Health which they claim shows taxing unhealthy foodstuffs could reduce the number of deaths from heart disease and strokes in Britain. VAT of 17.5 per cent is al...
Read MoreIs this one gamble too many for Alistair Darling?
No matter how you wrap up today's pre-budget speech, a £21 billion gamble on the UK economy has been taken and if this fails we are all in deep deep trouble. A number of tax cuts, tax increases and additional borrowing for the government budget have taken the UK deficit this year to nearly £80 billion. While this figure is bad enough it is set to rise to a record £120 billion next year!
...
Dixons group not expecting double dip recession
DSG, the group which owns Dixons and PC World, has taken a very different tack on the UK economy amid concerns of a potential double dip recession. John Browett, the chief executive, believes that while business levels are not what you would expect in a normal economic environment there is no sign as yet of a double dip recession. Even though the group has benefited from the World Cup during th...
Read More