The outlook does not seem particularly bright when it comes to annuity rates UK. The global recession blitzed these rates as it did elsewhere in the world. Annuity rates in the UK seemed to be improving somewhat as the bond yields on which they are based rose in the early part of the year. However, the Japanese crisis caused these yields to drop by almost 0.5% which negatively affected annuity rates UK once more.
Unisex Annuity Rates
The recent EU ruling on gender with regards to annuities should send savers scampering to their nearest independent financial advisor. Annuity rates were always calculated according to your presumed life expectancy. Traditionally, insurers gave men better rates because women live several years longer than men on average. The life expectancy of UK women is currently 82 with men trailing 4 years behind. However, a recent EU ruling has ended gender based annuity rates. This will cost the average UK man approximately £300 per year based on a pension worth £100,000.
This change in annuity rates means a host of new options need to be considered. For example, if you have less than £18,000 in your pension pot, you can withdraw the entire amount without having to worry about an annuity. Insurers have until 21 December 2012 to comply, though expect most to change their annuity rates as soon as possible.
These changes will have serious implications. Expect the market to go crazy with dozens of different products on offer. The new range of prices is sure to be confusing which is why an independent financial advisor is absolutely essential. They can wade through the maelstrom of figures, features, guarentees, and benefits helping you get the very best deal. Fill out our form which will connect you with an advisor in quick time.