Current annuity rates do not give much cause for optimism. Research has shown that annuities today offer among the worst value for money in history. They are linked to interest rates which are at an exceptionally low level due to the global recession and are unlikely to increase in the near future. This is why it is vital to enlist the services of an independent financial advisor who will work tirelessly to find good value amongst dismal current annuity rates.
A Bleak Future
A 65 year old male would have received a generous annual payment of £1,145 with a £10,000 investment back in 1994. Today, that individual would be lucky to receive over £600 per annum. Even more galling is the fact that this research is based on common annuities which do not rise with inflation. This essentially means that the value of the money has also decreased. Choosing the wrong annuity amid the throng of bad current annuity rates could see you being forced to work well into your 70s.
The reason why fixed rate annuities are so popular is because they offer a guaranteed income for life. The alternatives are risky investments related to the stock market which has also performed abysmally in the last decade. This is why the awful current annuity rates are so damaging to the general public. Most private sector workers are on defined contribution pensions. Once they retire, they cash in their pension to purchase an annuity but current annuity rates have ruined the retirement dreams of many.
The services of independent financial advisors have never been so crucial. Their skill and expertise will help you find the best of a bad bunch of current annuity rates. They may even find a value for money return on investment. You must place your pension in their capable hands. Having faith in their abilities is likely to earn you a reward. Fill in the form and speak to an independent financial advisor who can hopefully find a pot of pension gold at the end of a torrid rainbow.