Annuity Base

Open Market Option Comparisons for Pension Income

annuities
Share |

The Difference Between The Best And Worst Pension Incomes Can Be Very Surprising

Aegon Annuities Aviva Annuities Axa Annuities Canada Life Annuities Friends Life Annuities Hodge Annuities Just Retirement Annuities Legal and General Annuities LV Annuities
MGM Annuities Novia Annuities Old Mutual Annuities Partnership Annuities Phoenix Annuities Pru Annuities Royal London Annuities Scottish Widows Annuities Zurich Annuities annuities

We value your privacy: The same as almost all sites, we use computer files called cookies that measure how many people use the site. They can't be used to identify you personally. If you continue without changing your settings, we'll assume that you are happy to receive cookies. We don't share your information with 3rd parties.

Looking for an alternative to an annuity? Visit Annuity Answers.

Archived Annuities News / Income Drawdown News

What's happening in the world of pensions

News and articles about annuities, pensions and income drawdown

PLEASE BOOKMARK NOW

By following any of these links you will be leaving the Annuity Base site and we are not responsible for the accuracy of the information contained in any other site or the regulatory status of any other firm within the linked sites accessible from this page.

Thousands allowed to escape annuities bought before Budget

The Government say that savers who signed up for annuities immediately before the Budget will be able to take advantage of the new pension freedoms. This will allow the customers to still take advantage of the new pension freedoms granted by George Osbourne. George declared that "no one will have to buy an annuity" from April 2015.

Exchequer Secretary to the Treasury, David Gauke, said those who had taken a tax free lump sum from their pensions will no longer be obliged to use the remainder to buy an annuity within 6 months, as this has previously been the case. Instead, pensioners will have up to 18 months to decide what to do and how to use the rest of their savings.

Previous to the Budget around 1000 people each day had been purchasing annuities, which provide an income for life to pensioners. This was the only effective manner in which many could access their savings.

Typically people take a quarter of their pension as tax free cash and use the remainder to purchase an annuity for annual income. The 25% tax free cash is normally paid while the insurance company prepare the annuity payments.

When the announcement was made in regards to pensions, thousands of savers who were about to take an income from their pension, bombarded insurances companies trying to cancel or delay. At the time the insurance companies were unsure if the contacts would be undone following the payment of the lump sum.

HMRC then confirmed that the savers who had taken the tax free lump sum would not be compelled to take an annuity, or enter a contract that provided a regular income within 6 months. They will get an extension until Sept 2015 to allow them to withdraw all of the savings using the rules due to be introduced in April 2015. Also many insurers have increased their cancellation periods from 30 to 60 days.

The FCA are asking annuity providers to proactively contact their customers who have recently applied for an annuity to alert them of the new rules. Source

Income warning over annuity delay

Savers who put off buying an annuity for two years in the hope that rates will rise further may have to wait up to 41 years to recoup the lost pension income, according to new figures.

MGM Advantage, a pension provider, has calculated that a 65-year-old with a £100,000 pension pot would lose about £11,000 in income by putting off an annuity purchase for two years, if rates remained at the same level as today. Source

Long Live Annuities?

A man of 88 believes he has had the best deal ever from Norwich Union.

88 year old Frank Collinson purchased an annuity from erstwhile Norwich Union when he retired in 1988 at the age of 62 and obtained a rate of 15% and now wishes he could of invested more.

Frank has been paid 4 times the amount he invested within the last 26 years and reckons it is one of the best financial deals he has ever had.

The pensions minister Steve Webb said this week that pensioners could be given an estimate of when they might die to help them manage their finances. The idea of this is to give them an approximate life expectancy to help them make more informed decisions about managing money. This will take in to consideration factors such as gender, smoking, drinking, weight and postcode.

The average British male at 65 has another 18.3 years to live, and this figure keeps rising. In the early 80's is was only another 13 years! If you're a non-smoking, white-collar salary earner who lives in one of the better parts of the country you can add another 5-10 years on top of this. Men who hit 85 will, on average survive another 6 years and 1 in 9 will hit 100!

Frank benefited from taking an annuity before the dramatic collapse in inflation and interest rates over the last 30 years, he was luckily on the right side of the equation, while anyone retiring today is unfortunately on the wrong side. If Frank were to buy an annuity from Aviva at 65 today, it would offer a rate around 5.6% which would take him 17.9 years to see his money back, so he will still of made money in the long run. Source

Annuity rates bounce back in the second quarter of 2013

Average annuity rates increased by 2.4% in the second quarter of 20131 and rates are up by 5.6% since December 2012.

In 3 years, rates have still fallen by 15%, meaning someone would need a pension pot worth 24% more today to generate the same annuity income as someone who retired three years ago. However, this good news is unlikely to be sustained due to the long-term pressures being felt by the annuity market. A director of MGM, commented: "Although this is good news, annuity rates have only recovered the ground lost in the second half of 2012. We are also not even close to the rates seen even just three years ago, meaning people approaching retirement will face some difficult decisions." Source

Pension payouts to soar by 25 per cent

Pension payouts could increase by as much as 25 per cent in the coming years, investment experts said yesterday. Future pensioners are likely to enjoy much better incomes as the rates that drive annuity returns – the amount paid out each year in retirement – rise sharply.

These rises will see income for those with annuities increase by at least 10 per cent in the short-term, rising by up to 25 per cent. Even a 10 per cent rise means that someone buying an annuity with a pension pot of around £100,000 will see their income go up from around £5,600 to £6,100. Source

Partnership to retain enhanced annuity focus following IPO

Partnership chief executive Steve Groves says the provider will continue to focus on enhanced annuities and long-term care products following its IPO and has no immediate plans to enter the standard annuity market.

Earlier this week, Partnership announced plans to float on the London Stock Exchange. Sources say the flotation is likely to value the insurer at over £1bn. Source

Annuity rate decline revealed. Pension income falls 29% in 3 years

26 April 2013. Buying an annuity is 29 percent more expensive today than it was in 2009, according to new figures from Office for National Statistics. To guarantee a pension income of £5,000 a year, a 65-year old man now needs a pension pot of £152,800, compared to £118,000 three years ago. Source

Annuity Rates On The Up – But Not For Long

Annuity rates increased in the 1st quarter of 2013, but retirees shouldn't breathe a sigh of relief just yet. Those approaching retirement have had little to cheer about as savings and annuity rates remain low. But annuity rates are now starting to edge up for the first time in two years.

Research by the annuity provider MGM Advantage shows annuity rates have increased three percent in the 1st quarter of 2013, the first rise in 2 years. However, despite this welcome increase, a pension pot of £50,000 would generate £10,224 less income over the typical 18-year retirement compared to the same amount 2 years ago. Source

Half Of Those Entering Retirement Entitled To Higher Annuity

Health or lifestyle conditions mean 50 per cent of 65 year olds could secure more income from an annuity, new research has found. Enhanced annuities, including those known as ‘impaired life’, offer better rates because it is presumed that those entitled to buy them have lower life expectancies. On average, they add 25 per cent to a retiree’s income.

Medical conditions that enable individuals to purchase enhanced annuities include diabetes, cancer, high-blood pressure and chronic obstructive pulmonary disease; smokers too can secure preferential rates.

Analysis by annuity provider Partnership has revealed that this means half of those retiring at 65 in the UK could opt for an enhancement. Source

Pensions: Annuity sales to be investigated by FSA

31 January 2013. The way annuities are sold is being investigated by the City regulator, the Financial Services Authority (FSA).

Annuities are the annual pension that many people buy with their private pension pots when they retire.

The FSA will look at whether or not people are given enough encouragement and information to shop around.

The long-standing worry has been that people get a bad deal by just taking the annuity offered by the insurer which has been investing their money.

The FSA made it clear that there was a problem that needed investigating. "An annuity purchase is an important one-off decision that has long term consequences for individuals if they get it wrong" said Nick Poyntz-Wright of the FSA. Source

Pensions Regulator redefines no Sipps stance for auto-enrolment

12th December 2012. The Pensions Regulator (TPR) has argued that group self invested pension plans (Sipps) can be suitable for automatic enrolment, under certain conditions. Read more: Pensions Regulator redefines no Sipps stance for auto-enrolment

NAPF responds to ABI’s consultation on annuity rates transparency

11th December 2012. The National Association of Pension Funds (NAPF) has submitted its response to the Association of British Insurers’ (ABI) consultation on annuity rate transparency, arguing that the proposals are a “step forward” for the industry. Read more: NAPF responds to ABI’s consultation on annuity rates transparency

Wealthy pension savers set to boost contributions ahead of tax relief caps

10th December 2012. The next 18 months could see wealthy savers boosting their pension pots in a bid to maximise their annual tax-free contributions before new rules come into force in 2014. Read more: Wealthy pension savers set to boost contributions ahead of tax relief caps

Almost half of Brits still unaware of impact of EU Gender Directive

7th December 2012. With only two weeks to go until the introduction of the EU Gender Directive, nearly half of Brits are still in the dark about the impact of the new rules. Read more: Almost half of Brits still unaware of impact of EU Gender Directive

Reduction in pension relief allowance will hit 340,000 high earners

6th December 2012. The Chancellor’s decision to cut pension tax-breaks from £50,000 to £40,000 a year is set to hit tens of thousands of middle and high-income earners, experts warned. Read more: Reduction in pension relief allowance will hit 340,000 high earners

Missed pension opportunities in Chancellor’s Autumn Statement, says Saga

5th December 2012. The Director-General of Saga, has argued that George Osborne has missed opportunities to improve pension saving in today’s (December 5th) Autumn Statement, while praising measures such as an increase in the maximum pension income from capped drawdown and pension fund infrastructure investing. Read more: Missed pension opportunities in Chancellor’s Autumn Statement, says Saga

Research reveals high level of uncertainty about retirement income

4rd December 2012. Millions of savers in the UK are uncertain about the level of private and state pension income they will receive when they reach retirement, according to new research. Read more: Research reveals high level of uncertainty about retirement income

Mixed outlook for annuities as both rises and falls recorded

3rd December 2012. Conventional annuities rates have climbed for both men and women over the past two months, while enhanced annuity rates have gone into decline over the same period, revealing a mixed outlook for the annuity market. Read more: Mixed outlook for annuities as both rises and falls recorded

NEST wins Best use of DC & Hybrid Structures at IPE Pension Fund Awards

30th November 2012. The National Employment Savings Trust (NEST), the automatic enrolment pension scheme for UK employers, has been awarded Best Use of Defined Contribution & Hybrid Structures at the IPE Pension Fund Awards. Read more: NEST wins Best use of DC & Hybrid Structures at IPE Pension Fund Awards

Government contemplates ‘pooling’ small pension pots

29th November 2012. The government is considering a “pooling” mechanism for smaller pension pots, in a bid to get a better annuity deal for consumers. Read more: Government contemplates ‘pooling’ small pension pots

More over 50s expected to work past retirement age

28th November 2012. The number of men and women over 50 who will be working past state retirement age has risen by 45% over the last two years. Read more: More over 50s expected to work past retirement age

UK firms less able to meet defined benefit pension obligations

27th November 2012. The UK's top 350 companies are less able to meet their defined benefit (DB) pension obligations than they were pre-recession, according to PricewaterhouseCooper’s (PwC) latest Pensions Support Index. Read more: UK firms less able to meet defined benefit pension obligations

Tax breaks on pension savings should be abolished, says leading think tank

26th November 2012. Tax breaks on pension funds should be replaced by a 5% increase on each pension pot, before they are used to buy an annuity, according to proposals set out by think tank the Centre for Policy Studies (CPS). Read more: Tax breaks on pension savings should be abolished, says leading think tank

Pension plans to be given “star ratings” under government proposals

23rd November 2012. A planned overhaul of the pensions system, designed to restore consumers’ faith in pension savings, could see a “star rating” for auto-enrolment schemes. Read more: Pension plans to be given “star ratings” under government proposals

Pension plans to be given ‘star ratings’ under government proposals

22nd November 2012. A planned overhaul of the pensions system, designed to restore consumers’ faith in pension savings, could see a ‘star rating’ for auto-enrolment schemes. Read more: Pension plans to be given ‘star ratings’ under government proposals

CIPD predicts that auto-enrolment could increase by 30%

21st November 2012. The number of workers auto-enrolled into a workplace pension could soar by 30% if those not currently saving under their scheme remain opted-in when their staging date comes around. Read more: CIPD predicts that auto-enrolment could increase by 30%

Workers pension pots jeopardised by insufficient contributions

20th November 2012. The UK’s workforce could be jeopardising their chances of a comfortable retirement, after research revealed that over a third of employees were reluctant to invest more than 5% of their salary into their pension pot. Read more: Workers pension pots jeopardised by insufficient contributions

London Underground engineers to strike in pension row

19th November 2012. London Underground engineers will stage a 24-hour walkout at 6am on Friday, after a satisfactory conclusion failed to be reached between Transport for London (TfL) and The Rail Maritime and Transport union (RMT) in a dispute over pensions and benefits. Read more: London Underground engineers to strike in pension row

Treasury denies income drawdown reforms

16th November 2012. The Treasury has quashed rumours suggesting that it was set to publish a consultation on income drawdown reforms. Read more: Treasury denies income drawdown reforms

UK pension fund deficits see marginal fall

15th November 2012. The combined deficit of the UK's private sector final-salary pension schemes fell by a figure of £2bn in October, according to the Pension Protection Fund (PPF). Read more: UK pension fund deficits see marginal fall

Annuity rates set to improve, say advisors

14th November 2012. More than half of independent financial advisors (IFAs) expect annuity rates to improve over the next five years, according to a survey conducted by Primetime Retirement. Read more: Annuity rates set to improve, say advisors

'Gender-neutral' rates set to put less of a dent on male annuities

13th November 2012. The roll out of "unisex" rates ahead of the introduction of the EU Gender Directive on 21 December will see the income for men who buy annuities fall by less than expected, according to the latest rates from one leading insurer. Read more: 'Gender-neutral' rates set to put less of a dent on male annuities

80% of IFAs worried about low annuities rates

12th November 2012. A growing number of financial advisors are concerned about the low rate of lifetime annuities and are looking for alternatives, according to new figures. Read mroe: 80% of IFAs worried about low annuities rates

Pension schemes ploughing more money into bonds than shares

9th November 2012. Pension schemes are investing more money in bonds and shares for the first time in decades, according to an annual survey by the Pensions Regulator and the Pension Protection Fund (PPF). Read more: Pension schemes ploughing more money into bonds than shares

Consultation on annuity rate transparency launched

8th November 2012. The Association of British Insurers (ABI) has launched a consultation on the transparency of annuity rates, with the aim of ensuring that those approaching retirement get the best deal on their pensions. Read more: Consultation on annuity rate transparency launched

IFAs urged to mix and match retirement products

7th November 2012. A third of independent financial advisors (IFAs) are failing to blend retirement products for a single client, even if this would result in making the best use of their funds, according to research from Prudential. Read more: IFAs urged to mix and match retirement products

DWP examine impact of Nest restrictions on automatic enrolment

6th November 2012. The Department for Work and Pensions (DWP) is seeking views and evidence on whether Nest (National Employment Savings Trust) restrictions are influencing businesses’ choice of automatic enrolment scheme. Read more: DWP examine impact of Nest restrictions on automatic enrolment

DB scheme deficits hampering investment prospects for UK businesses

5th November 2012. Mounting defined benefit (DB) pension scheme deficits are restricting businesses’ ability to invest in their own development, according to a new report by the Institute of Chartered Accountants in England and Wales (ICAEW) and Mercer. Read more: DB scheme deficits hampering investment prospects for UK businesses

Pension pots to set to plummet under new FSA rules

2nd November 2012. Millions of pension savers could see a significant drop in their retirement pots under new rules requiring pension firms to slash growth forecasts in the wake of the economic downturn. Read more: Pension pots to set to plummet under new FSA rules

Falling annuity rates could see women working longer than men

1st November 2012. Plummeting annuity rates could see women working longer than men to achieve the same level of pension income. Read more: Falling annuity rates could see women working longer than men

Public sector workers more likely to contribute to workplace pensions

31th October 2012. Public sector employees are more than twice as likely to contribute to workplace pensions as their counterparts in the private sector, according to a report published by the Trades Union Congress (TUC). Read more: Public sector workers more likely to contribute to workplace pensions

IFAs concerned about offering annuity advice ahead of EU Gender Directive

30th October 2012. Six out of 10 independent financial advisors (IFAs) are concerned about giving advice on buying lifetime annuities to female clients, ahead of the introduction of an EU Gender Directive on 21 December. Read more: IFAs concerned about offering annuity advice ahead of EU Gender Directive

Pensions Industry calls review of drawdown limits

29th October 2012. Representatives from the pensions industry are calling for new drawdown limits to be reviewed, after some pensioners saw the amount they can take from their retirement funds drop by as much as 50%. Read more: Pensions Industry calls review of drawdown limits

Local Authority pensions could fund new homes

26th October 2012. Capital from Local Authority pension schemes could pave the way for hundreds of thousands of new homes to be built, according to proposals outlined in a study by the Future Homes Commission. Read more: Local Authority pensions could fund new homes

‘Imaginative’ ideas needed to meet the cost of an ageing population

25th October 2012. Lord Bichard, a former head of the Benefits Agency and top civil servant at the Education Department, has suggested a series of radical series measures to meet the cost of the Britain’s ageing population. Read more: ‘Imaginative’ ideas needed to meet the cost of an ageing population

Government contemplating fund for defined-contribution pension schemes

24th October 2012. Pension Minister Steve Webb has confirmed that the government is looking at ways to “underpin” a guarantee for members of defined-contribution (DC) pension schemes. Read more: Government contemplating fund for defined-contribution pension schemes

Pensioners set to retire on a fraction of their normal income

23th October 2012. The majority of workers aged between 50 and the state pension age will face a 20% drop in their income once they begin to rely solely on their retirement’s savings, according to new research. Read more: Pensioners set to retire on a fraction of their normal income

Research reveals gender gap between pension pots

22th October 2012. The gulf between the pension pots of male and female retirees has now reached nearly £30,000, according to new research. Read more: Research reveals gender gap between pension pots

Major Pension Funds sign up to Pension Investment Platform

19th October 2012. The National Association of Pension Funds (NAPF) and the Pension Protection Fund (PPF) have confirmed that six major UK pension funds have signed up to the Pension Investment Platform (PIP). Read more: Major Pension Funds sign up to Pension Investment Platform

UK employers not ready for 2013 auto-enrolment

18th October 2012. Almost a third of businesses who have a staging date for auto-enrolment in the first half of 2013 are unprepared for the requirement to enrol their staff into workplace pensions. Read more: UK employers not ready for 2013 auto-enrolment

Pension funds call for changes to negate effects of QE

17th October 2012. The National Association of Pension Funds (NAPF) has called for a series of changes that will help pension funds offset some of the damage done by the government’s £375bn quantitative easing (QE) programme. Read more: Pension funds call for changes to negate effects of QE

UK pensions system ahead of Germany and France in World Ranking

16th October 2012. The UK’s pension system is in the midst of a significant overhaul, with the recent introduction automatic-enrolment, followed by proposals to introduce a flat-rate state pension and a ‘pot follows member’ pension scheme. Read more: UK pensions system ahead of Germany and France in World Ranking

Royal Opera House contemplating closure of final salary pension scheme

15th October 2012. The Royal Opera House has begun a consultation on whether its defined benefit scheme should be closed to further additions. Read more: Royal Opera House contemplating closure of final salary pension scheme

Pension reforms ‘unfair’ says British Medical Association

12th October 2012. The British Medical Association (BMA) has called the government’s planned reform of public sector pension schemes “fundamentally unfair”, arguing that NHS staff will be hardest hit by the changes. Read more: Pension reforms ‘unfair’ says British Medical Association

Auto-enrolment into old pension schemes could prompt mis-selling scandal

11th October. The pension’s industry could face a mis-selling scandal, if workers are automatically enrolled into old, high-charge pension schemes, according to the findings of a new report. Read more: Auto-enrolment into old pension schemes could prompt mis-selling scandal

Annuity rates set to tumble further after EU gender ruling

10th October 2012. Plummeting annuity rates are set to sink even further after an EU gender directive comes into effect from 21 December 21. Read more: Annuity rates set to tumble further after EU gender ruling

Pension deficits down say PPF

9th October 2012. The combined deficit of the UK's private sector final-salary pension schemes fell to £229bn last month, according to the Pension Protection Fund (PPF). Read more: Pension deficits down say PPF

Changes to RPI inflation could hit pension pots

8th October 2012. Changes to the calculation of the retail prices index (RPI) could lead to a drop in pensioners' incomes, according to leading pension expects. Read more: Changes to RPI inflation could hit pension pots

Deficits of defined pension schemes fall, while funds rise

5th October 2012. Defined benefit pension schemes “appear to be in better health compared to 10 years ago”, with a drop in deficits and an increase in funds, according to figures from consultancy firm Mercer. Read more: Deficits of defined pension schemes fall, while funds rise

Almost half of business owners have failed to make any pension provision

4th October 2012. Self-employed business owners are failing to adequately plan for their retirement, with almost half having no private pension provision in place. Read more: Almost half of business owners have failed to make any pension provision

Employers given more time to plug deficits

3rd October 2012. The Pensions Regulator has thrown companies a lifeline in their bid to fill mounting pension deficits, as the collective deficit for final salary pension schemes in the private sector hits £280bn. Read more: Employers given more time to plug deficits

Auto-enrolment welcomed by trade unions and industry bodies

2nd October 2012. The official roll out of automatic enrolment into workplace pension schemes has been welcomed by trade unions and industry bodies.Read more: Auto-enrolment welcomed by trade unions and industry bodies

Annuity rates for men could drop by almost 15%

1st October 2012. It is no secret that the UK pension industry is currently undergoing a bit of a crisis. Many people who have retired or are due to retire shortly will be living on shoestring budgets, a far cry from the comfortable retirement they might have imagined. Read more: Annuity rates for men could drop by almost 15%

Auto-enrolment – what do I need to know?

28th September 2012. Monday is set to be a big day for both workers and companies, with the biggest pension shake-up ever coming into force. Read more: Auto-enrolment – what do I need to know?

ONS plans threaten to shake up the pension industry

27th September 2012. Controversial new plans by the ONS to potentially alter the way in which it calculates the RPI (Retail Prices Index) could have significant consequences for anyone that currently has a defined-benefit pension scheme. Read more: ONS plans threaten to shake up the pension industry

Interest in automatic enrolment growing among non-pension holders

26th September 2012. It is estimated that 600,000 people will be enrolled in a workplace pension by the end of the year as a result of the introduction of automatic enrolment. Read more: Interest in automatic enrolment growing among non-pension holders

PPF lower than expected levy welcomed by industry bodies

25th September 2012. Leading industry bodies in the pension and business sectors have welcomed the news that the Pension Protection Fund’s (PPF) estimated levy for the 2013/14 year is expected to remain at same level as that for the current year. Read more: PPF lower than expected levy welcomed by industry bodies

Pension firms take on average 11 years to pay back deficit

24th September 2012. Pension firms are now taking an average of 11 years to repay deficits, an increase of 3 years compared to the average repayment period recorded in 2011. Read more: Pension firms take on average 11 years to pay back deficit

Guernsey pension and benefits set for potential 3.6% lift

21st September 2012. Annuity holders in the UK recently received the welcome news that gild yields had lifted from around 2.1% to 2.39%, and now pension holders in Guernsey may also have cause to celebrate after recommendations were put forward for a 3.6% rise in the island’s pensions. Read more: Guernsey pension and benefits set for potential 3.6% lift

Pre-retirees putting away just 2.5% of monthly income

20th September 2012. Far from building up a nest egg for the future, the average pre-retiree is setting aside just 2.5% of their income for savings, according to the results of a new study. Read more: Pre-retirees putting away just 2.5% of monthly income

ONS data reveals fall in workplace pension uptake

19th September. Automatic enrolment into workplace pensions will begin next month, and figures from the Office for National Statistics (ONS) have revealed that the overhaul of the pension’s system couldn’t have come at a more apt time. Read more: ONS data reveals fall in workplace pension uptake

Prime Minister calls for flat-rate pension reforms to be re-examined

18th September. According to reports in the Financial Times Prime Minister David Cameron has requested a re-think on the planned introduction of a flat-rate state pension in 2015. Read more: Prime Minister calls for flat-rate pension reforms to be re-examined

TV ads put the spotlight on automatic enrolment

17th September. A news series of advertisements running from today until mid-October across TV, radio, print and online media, will publicise the start of automatic enrolment next month. Read more: TV ads put the spotlight on automatic enrolment

Number of retirees seeking specialist pension advice set to rise

14th September. With the last two decades seeing a gradual decline in annuity rates, and the government’s programme of quantitative easing said to have worsened yield on gilts, the news that retirement income advisers have seen an upsurge in the number of retirees approaching them for pension advice may come as no surprise. Read more: Number of retirees seeking specialist pension advice set to rise

Public sector pension shake-up to save £65 billion

13th September 2012. Despite the threat of industrial action from leading employment unions, the government has announced that it is forging ahead with its proposals to overhaul public sector pensions. Read more: Public sector pension shake-up to save £65 billion

More than half of workers ‘unaware’ of automatic enrollment

12th September 2012. Despite the fact that businesses will be required to automatically enroll their employees into a pension scheme in less than a month, more than half of employees are oblivious to the impending changes. Read more: More than half of workers ‘unaware’ of automatic enrollment

Almost half of UK working adults have never reviewed their pension plan

11th September 2012. For most consumers, keeping an eye on our finances has become imperative in the current economic climate, with factors such as falling annuity rates, inflation increases and the rising cost of living all threatening to tip us into the red. Read more: Almost half of UK working adults have never reviewed their pension plan

Annuity rate declines continues to hit pension pots

10th September 2012. Annuity rates are continuing to plummet, putting the retirement pots of hundreds of thousands of pensioners at risk. Read more: Annuity rate declines continues to hit pension pots

Pensions need radical overhaul to make them more accessible, say Saga

7th September 2012. The director-general of Saga, Dr Ros Altmann, has called for pension schemes to be revamped in a bid to make the policies more accessible and less "frightening”. Read more: Pensions need radical overhaul to make them more accessible, say Saga

DWP figures reveal employment sectors that may benefit from auto-enrolment

6th September 2012. The Department for Work and Pensions (DWP) has argued that the builders, waiters and gardeners are among those professions most likely to benefit from the introduction of automatic enrollment next month. Read more: DWP figures reveal employment sectors that may benefit from auto-enrolment

Pension holders lose track of retirement pots

5th September 2012. Despite the fact that many workers will be looking to their pension plan to provide a nest egg for their retirement, recent research has revealed that 16% of employees lose track of their pension pots after they have changed jobs. Read more: Pension holders lose track of retirement pots

DWP decision may lead to a ‘pensions lottery’

4rd September 2012. A decision by the Department for Work and Pensions (DWP) that pension pots will follow employees when they change jobs, has been criticised by the National Association of Pension Funds (NAPF), who argue that the move may effectively create a ‘pensions lottery’. Read more: DWP decision may lead to a ‘pensions lottery’

Giving just £240 a month to your grandchild could make them a millionaire

3rd September 2012. With the £9,000 tuition fees due to be enforced this month and the soaring cost of living, the younger generation are likely to find they cannot afford to save for their retirement. Read more: Giving just £240 a month to your grandchild could make them a millionaire

Flat-rate pension receives mixed reviews

31st August 2012. Figures from the Department for Work and Pensions (DWP) recently revealed a wide disparity between state pension payments, with some retirees surviving on less than £7 a week and others receiving around £230 a week. Read more: Flat-rate pension receives mixed reviews

Council bosses give new pension deal the seal of approval

30th August 2012. The overwhelming majority of local government employers have given their backing to proposed changes to the staff pension scheme. Read more: Council bosses give new pension deal the seal of approval

Pensioners to Lose Over £100 as Annuity Rates Are Cut

29th August 2012. Pensioners could be facing problematic finances in the future as annuity rates have suffered their fourteenth cut since July; placing those who are of retirement age more than £100 worse off in many cases. Read more: Pensioners to Lose Over £100 as Annuity Rates Are Cut

Saga suggest QE has had a negative impact on pension pots

28th August 2012. The Bank of England (BoE) recently suggested that £375bn worth of quantitative easing (QE) has helped pensioners, while asserting that the bid to pump money into the economy has also acted to widen deficits on many defined benefit pension schemes. Dr Ros Altmann, Director-General of Saga, has hit back at the BoE’s claims that retirees have benefitted from QE. Read more: Saga suggest QE has had a negative impact on pension pots

Pensioners have gained from QE - says Bank of England

24th August 2012. The Bank of England’s (BoE) attempts to prop up the UK’s faltering economy through successive rounds of quantitative easing (QE), totalling some £375bn, has acted to help rather than hinder workers’ pension prospects. Read more: Pensioners have gained from QE - says Bank of England

ABI calls for more transparency over pension costs

23th August 2012. The Association of British Insurers (ABI) has outlined proposals to give UK retirees a clearer picture of pension charges. Read more: ABI calls for more transparency over pension costs

Nearly half of 55-64 year olds uncertain as to when they will retire

22th August 2012. Consumers are becoming increasingly uncertain about their definitive retirement age, as squeezed pension pots may mean that they have to work longer than expected or put off retirement altogether. Read more: Nearly half of 55-64 year olds uncertain as to when they will retire

DWP uncover significant gulf between state pension payouts

21th August 2012. The ‘staggering’ complexity of current regulations has meant that state pension payouts can vary from as little as £7 a week to £230 week. Read more: DWP uncover significant gulf between state pension payouts

Consumers warned over pension liberation schemes

20th August 2012. Scams which promise to unlock pension savings early could put the retirement pots of thousands of consumers at risk, according to official warnings from the Financial Services Authority (FSA) and HM Revenue & Customs (HMRC). Read more: Consumers warned over pension liberation schemes

Higher rate taxpayers lose out on £2,040 annually in tax relief by paying into a pension

17th August 2012. One in four higher rate taxpayers do not pay into pension schemes, resulting in them missing out on annual average tax relief figure of £2,040. Read more: Higher rate taxpayers lose out on £2,040 annually in tax relief by paying into a pension

Police Officers will have to wait for update on pension changes

16th August 2012. The Police Federation has revealed that there will be no announcements from the Home Secretary Theresa May on changes to police pensions until parliament returns from recess. Read more: Police Officers will have to wait for update on pension changes

Pension deficit increases in July

15th July 2012. The deficit of the UK's final-salary pension schemes reached £283bn in July, up from a figure of £267bn at the end of June. Read more: Pension deficit increases in July

BBC pension deficit soars to £2.6bn

14th August 2012. An increase of more than one billion pounds in the BBC’s pension deficit has been blamed on low interest rates and weak economic conditions, with the total deficit figure now reaching £2.6bn. Read more: BBC pension deficit soars to £2.6bn

Auto-enrolment “biased in favour of men”

13th August 2012. The pensions savings gap between men and women is set to increase this autumn as plans to get an additional 8 million people saving for their retirement fund exclude many lower paid and part-time workers. Read more: Auto-enrolment "biased in favour of men"

New EU gender rules could mean better pension prospects for women

10th August 2012. Women who keep their pensions invested could receive an additional £400 a year after HM Revenue and Customs (HMRC) confirmed that the new EU gender rules will apply to capped pension income withdrawals. Read more: New EU gender rules could mean better pension prospects for women

Sipps dubbed a ‘Self-Ignored Personal Pension’

9th August 2012. Less than one in three consumers who have Self Invested Personal Pensions (Sipps) have argued that they feel equipped to manage them properly, according to research by Investec Wealth & Investment. Read more: Sipps dubbed a ‘Self-Ignored Personal Pension’

Pensioners relying on other financial resources to see them through retirement

8th August 2012. Pensioners are increasingly relying on a range of financial resources to ensure that they maintain their standard of living during retirement. Read more: Pensioners relying on other financial resources to see them through retirement

Pension holders fail to disclose hidden charges

7th August 2012. Pension providers may be able to keep policy holders in the dark about little-known pension charges, despite a code being drawn up to end this practice. Read more: Pension holders fail to disclose hidden charges

Survey reveals falls in pension expectation

6th August 2012. Pensioners now have lower expectations for their retirement income, according to figures from a recent survey. Read more: Survey reveals falls in pension expectation

MOD announces proposals for changes to military pensions

3rd August 2012. The Ministry of Defence (MoD) has announced that reforms to military service pensions, which are set to come into effect from April 2015, will be subject to consultation before they come into force. Read more: MOD announces proposals for changes to military pensions

Automatic enrollment could almost double pension pots

2nd August 2012. Despite concerns that the UK’s new national pension scheme will cause employees to miss out on the best deals for their retirement pots, government research has revealed that the scheme could see workers almost double their pension provision. Read more: Automatic enrollment could almost double pension pots

TUC warns that new pension system changes may cost employees

1st August 2012. Leading employment union the Trade Union Congress (TUC) has argued that employees may have to foot the bill for companies seeking out advice on the automatic enrolment scheme. Read more: TUC warns that new pension system changes may cost employees

BMA asked to act as intermediary in row over NHS pension plans

31st July 2012. The British Medical Association (BMA) has been asked to hammer out an alternative to the government's plans for NHS pensions in conjunction with leading employment unions. Read more: BMA asked to act as intermediary in row over NHS pension plans

Pension changes could lead retirees to miss out on best deals

30th July 2012. A leading pension’s campaign body has warned that the investments of millions of workers could be threatened as a result of the government’s new retirement fund system. Read more: Pension changes could lead retirees to miss out on best deals

Number of employees with pension savings drops by 15%

27th July 2012. The number of workers who are active members of their employers’ pension scheme has dropped by 15% in the last five years, according to figures from the Department for Work and Pensions (DWP). Read more: Number of employees with pension savings drops by 15%

Bank of England's quantitative easing measures blamed for pensions 'meltdown'

26th July 2012. Experts have argued that the Bank of England’s attempt to prop up Britain’s ailing economy with successive rounds of quantitative easing (QE) has led to a pensions 'meltdown’. Read more: Bank of England's quantitative easing measures blamed for pensions 'meltdown'

Government announce that they will not extend gender-neutral pricing

25th July 2012. Industry experts have warned that the government’s decision not to extend gender-neutral pricing to occupational pension schemes will create a "two-tiered" annuity market. Read more: Government announce that they will not extend gender-neutral pricing

Annuities: Getting The Best Possible Income In Retirement Is Getting Tougher

2nd July 2012. Laziness Could Cut Your Pension By 12 percent. New research has revealed that there can be sharp differences in annuity rates, even among the leading deals. It has been the case for a long time that the return you can get from different annuities can be pretty different. But new analysis has revealed that there are big variances even among the annuities at the top of the best buy charts. The difference between the best rate and the 5th best rate on a £50,000 pension fund is currently an average of 12 percent for both level and enhanced annuities.... Annuity Rate News

EU Gender Confusion Will Create Annuity Anomaly

30th June 2012. Men in workplace pension schemes may still get gender-based annuities despite an EU ruling forcing providers to offer unisex rates from December. European lawmakers last year outlawed insurance companies from offering a different level of pension to men and women based purely on their sex, with the new rules set to come into force on 21 December. The divergence happens now because, on average, women live longer than men, which means insurers are willing to offer males a higher retirement income than females.... Annuity News

Low-cost Drawdown Plans Offer Escape From 'Annuity Trap'

21st May 2012. Those about to retire have had to choose between rock-bottom annuity rates and complex drawdown plans, but not any more. If you're about to retire and can not bring yourself to buy an annuity at today's rock-bottom rates, you have a range of new options, which purport to offer greater flexibility, protection against inflation, and, most importantly, a chance of getting a higher income from your pension fund. There are a growing range of fixed-term annuities, plus investment-linked options. But one of the most significant developments will be the emergence of "low-cost income drawdown plans", which one expert has dubbed "middle-class pension plans"... Drawdown News

Aviva's first Working Lives report outlines the challenges of getting Britain's workers saving

2 May 2012. Many employers (70 percent) are aware of pension reform changes but 68 percent of employees have little or no knowledge of automatic enrolment yet. 43 percent of employees currently without a pension said they would remain in a scheme once they were automatically enrolled – but opt outs could be significant.

Employees are most concerned (53 percent) about how their pay compares to the cost of living, while employers worry most about keeping up with the competition (58 percent). Read more: Aviva's first Working Lives report outlines the challenges of getting Britain's workers saving

Retirement incomes fall by £13,000 since 2000

28th March 2012. The average income that workers can expect from their pensions has fallen by £13,000 a year since the year 2000. Pension savers have been hit by a combination of turmoil in the financial markets, falling annuity rates and rising longevity. Workers who don't belong to generous final salary schemes – which are dying out in the private sector – must build up a pension pot, which is used to buy an annuity or income for life at retirement... Retirement Income News

Guidance Published On Annuities

7th March 2012. Annuities have hit headlines following the Association of British Insurers’ (ABI) release of its finalised code of conduct for pension providers, which will require them to provide more information about the types of products available on the wider market and to stop including application forms for conventional annuities in their information packs...Annuities News

Equitable Life to Stop Offering Annuities

1st March 2012. Equitable Life aims to use partnership with Canada Life to free up capital to pass to policyholders. Equitable Life will no longer offer maturing policyholders annuities after the company struck a new agreement with Canada Life, which it says will give it easier access to capital. By not offering its own annuities, Equitable Life said it will have “quicker and easier access to capital” which it can then pass on to policyholders...Equitable Life Annuities News

Amps Survey Calls For Drawdown Re-Think

27 February 2012. Association chairman calls for HMRC to increase the minimum yield for calculating drawdown to boost take-up. Over 70 per cent of self invested personal pension and small self administered scheme providers think that the reduction in maximum drawdown rates after April 2011 should be reviewed, new data from an Association of Member Directed Pension Schemes survey has shown...Drawdown News

Aviva reveals an 'eagle-eyed generation' of retirees ready to challenge the younger workforce

11 January 2012. Research from retirement specialist Aviva has unleashed a new work hungry generation of retirees who are ready to embrace part-retirement and continue working.

It has long been thought that upon retirement, the majority of people would relish in the idea of long days playing golf, socialising, going on extended holidays or taking up a new hobby. However, Aviva have detailed in their Real Retirement Reports, retirees are now facing a challenging landscape of decreased savings and an increase in personal debt. This not only highlights a generation of over 55's wanting to get back to work as an activity to do, but also those retirees who simply cannot afford to stop working, no matter what their age.

86 percent think they could do a better job than some younger people at their roles.
67 percent believe the younger generation moan too much about their work-life balance.
83 percent think they are more practical than the younger generation.

Annuities and Drawdown 2011

23 December 2011. For pension investors, 2011 should have been a year defined by landmark policy reforms, bringing in unprecedented levels of freedom and flexibility in retirement planning. But in fact the year closed with many retirees facing large cuts to their income – or being offered record low annuity rates for their lifetime savings. In April, the government implemented its promise to scrap the pension rule that, for more than 3 decades, had forced thousands of pension investors to move their funds out of the stock market and buy an annuity once they turned seventy five. This reform was coupled with the introduction of flexible drawdown...Annuities News

Just Retirement Wins Top Gong At Service Awards

18 November 2011. Company of the year at the Financial Adviser Service Awards went to Just Retirement, while a score of other names won in the e-commerce, mortgages, investments, life and pensions categories. LV=, Transact and Scottish Life were also among winners. Aviva scored as the most improved in the Investment Providers and Platforms category. ...Just Retirement News

Hornbuckle Mitchell Opens Doors To Flexible Drawdown

27 October 2011. Hornbuckle Mitchell, the Income Drawdown and Sipp provider, has started accepting applications from clients wishing to take their pension income via flexible drawdown. Flexible drawdown lets pension scheme members who have over £20,000 per year secure income - from state pension, annuities and final salary schemes - to take funds directly from Sipps and other personal pensions without them being subject to a cap...Hornbuckle Mitchell News

Caution Urged Over Fixed-Term Annuities

27 October 2011. As income levels fall to record lows, investors looking to put off buying a traditional annuity on retirement are being advised to take a cautious view of fixed-term annuity plans that are sold as a way of keeping their pension options open. According to the MGM Advantage Annuity Index, the average rates from conventional and enhanced annuities fell by 4.15% and 2.3% respectively, in the 3 months to the end of September...Fixed term Annuity News

Partnership Assurance Might Be Sold With Price Tag Of Around £750m

19 September 2011. Retirement specialist Partnership Assurance (an annuity provider) will be the subject of a bidding war with a price tag in the region of £750 million. Its private equity firm parent Cinven is set to start the process to sell Partnership Assurance after receiving a number of takeover approaches...Partnership Assurance News

Which Survey Highlights Retirement Shortfall

27 August 2011. Research by Which has shown that a single person hoping to receive a post-tax retirement income of £1,500 per month will need to have saved up a pension pot of £230,000 by the time they reach age 65. If they buy an index-linked annuity, to protect their pension income against inflation, the figure rises to £370,000...Pension Shortfall News

Annuities 'Last For a Lifetime'

26 August 2011. An expert's claimed that an annuity makes a good investment because it lasts a lifetime. According to Fiona Tait, in the FT, retirees should not be deterred from making the alternative investment because of falling rates and dwindling pension funds. "There's no doubt this will cause short term problems for some individuals but is there some good that could come of it?" she asked. "Annuities are for life. The key upside of a conventional annuity is that it doesn't run out." ...Annuity Rates News

LV= eyes up Hornbuckle takeover

19 August 2011. LV is in talks over deal that would create joint provider with 5th largest SIPP book. LV is close to a decision on whether to buy SIPPs and SSASs provider Hornbuckle Mitchell. A source confirmed that LV is in talks with pension specialist Hornbuckle Mitchell and is looking to buy the entire company...LV and Hornbuckle Mitchell News

Stock market falls cut pension values

12 August 2011. 1000's of pension investors are facing a poorer retirement as the world's stock markets slump and continuing falls in annuity rates have cut the income they hoped to receive by nearly 20 percent...Pension News

Will inflation affect my pension earnings?

11 August 2011. Index-linked returns grow at the same rate as inflation. Annuities with indexing are inflation-proof, but many take level-term annuities instead, where their income stays the same. This means it is worth less if inflation starts to rise. Pension savings can suffer in the same way...Inflation News

Expert says no time to lock into conventional annuity

11 August 2011. Those approaching retirement have been advised not to lock into conventional annuities amid tumbling markets. MGM Advantage has said pension investors might consider flexible annuities instead as a more lucrative alternative...Flexible Annuities News

Are We Getting A Raw Deal From Fixed Term Annuities?

3 August 2011. Are consumers getting a raw deal from fixed term annuities? The fixed term annuities market is growing fast, with more than 4500 advisers using them. But how do they compare with enhanced rates for lifetime policies and drawdown and are they a good deal for clients?...Fixed Term Annuity News

Thinking Ahead About Retirement: Retirees Advised To Seek IFA Guidance

1 August 2011. Those thinking about retirement are being advised to seek out the help of Financial Advisers (IFAs). Which Advisor made the recommendation, which showed up to 90 percent of IFAs believe the recent decreases to annuity rate payments will increase consumer demand for annuity alternatives to ...Retirement IFA Advice News

Falling annuities bode ill for pensioners: MGM Advantage

12 July 2011. MGM Advantage has warned that pensioners are facing a diminishing pot of money to support ever-increasing longevity after annuity rates fell over the past 3 months. MGM Annuities said income paid on enhanced and conventional annuities between March and June fell by 0.18 per cent and 3.5 per cent respectively....Annuity Rates News

UK to apply EU insurance gender rule from end 2012

30 June 2011. The UK will enforce a European Union ban on sex discrimination in insurance pricing from the end of next year, a government minister said on Thursday, dispelling insurers' concerns that the measure could apply to existing policies. Legal experts say the ruling is significant for many insurers in Europe because they use gender as a risk factor to price policies including annuities...Annuities Gender Rule News

Nest appoints 5-strong annuities panel

22 June 2011. National Employment Savings Trust (Nest) has revealed details of 5 annuities providers that have been appointed to its retirement panel, with each getting a contract that runs for ten years. Nest's panellists are: Canada Life Annuities and Legal and General Annuities (L&G) for both conventional and enhanced annuities; Just Retirement enhanced annuities and Partnership enhanced annuities; and Reliance Mutual for enhanced annuities specifically for those who smoke...Nest Annuities News

Hargreaves Lansdown and Wealth 150 attacked for 'secret commissions'

13 June 2011. Hargreaves Lansdown has been criticised for not fully disclosing its financial arrangements with fund managers. The Daily Mail said Hargreaves Lansdown is wrong to keep fees so secret. They said Hargreaves Lansdown is at a crossroads...Hargreaves Lansdown News

Enhanced Annuities: Annuity clients may be missing out on billions

10 June 2011. Research suggests that customers are missing out on billions of pounds by not applying for enhanced annuities and financial advisers could be part of the problem. Independent research by Oxford Economics, on behalf of the Pension Income...Enhanced Annuities News

The Pru issues warning over fixed-term annuities

9 June 2011. The Pru has warned that products are "bizarrely" governed by income drawdown rules and urges advisers to check explanation of risk in suitability letters. Prudential Annuities have issued a warning to advisers over fixed-term annuities, saying that clients may not understand the risk profile of the product. The comments follow the launch of new fixed-term annuities by providers such as Just Retirement Annuities, Living Time Annuities and LV Annuities...Fixed Term Annuities News

Higher annuity rates may not last long

2 June 2011. The Pru reports that those who are currently enjoying higher annuity rates might find that this trend is only short-term. It's possible that the UK is unlikely to see the long-term continuation of these high rates...Pru Annuity Rates News

Just Retirement appoints medical director

23 May 2011. Annuity provider highlights need for effective underwriting as it confirms appointment of Dr Tim Crayford, who has served as a government medical adviser. Just Retirement has appointed Dr Tim Crayford, formerly chief medical adviser to the department of transport and medical director for Norfolk Community Trust, to the newly created position of medical director...Just Retirement News

Consumers 'need more education' over annuities

11 May 2011. When it comes to annuity products, UK consumers need to be provided with an even greater level of education by firms operating in the country's financial services sector, it has been suggested. The Open Market Option is one area where further information could be provided to people, according to MGM Advantage...Call for Annuities Education

Annuity Company Hargreaves Lansdown pair make top 100 Rich List

20 April 2011. Peter Hargreaves and Stephen Lansdown are now amongst the UK's 100 wealthiest people, according to the Sunday Times Rich List 2011...Hargreaves Lansdown News

HMRC u-turns on income drawdown rules

20 April 2011. The taxman has back-tracked on income drawdown rules that could have left some investors trapped in poor personal pensions, in response to pressure from pension providers. The draft of the Finance Bill published on 31 March, said all savers switching their pension funds to new pension providers after 6 April would become subject to new, stricter withdrawal limits when later going into capped drawdown...Flexible Drawdown Rules

Savers advised to delay flexible drawdown decision

19 April 2011. HMRC's clarification on the rules for flexible drawdown mean that savers could benefit from not entering flexible drawdown until a year after they secure their income. HM Revenue and Customs (HMRC) has clarified rules around flexible drawdown, stating that the £20,000 minimum income requirement (MIR) needs to be evidenced for the tax-year in which drawdown is taken and not just guaranteed...Flexible Drawdown Rules

Income drawdown rules trapping pensioners with poor pots

13 April 2011. Pension experts warn investors could be stuck in poorly performing plans, as transfering out could lead to a loss of income following changes to drawdown rules. New income drawdown arrangements, which became available on 6 April, allow investors to withdraw 100% of their GAD or equivalent annuity rate...Income Drawdown Rules

Hornbuckle to delay offer of flexible drawdown

31 March 2011. Hornbuckle Mitchell will not be offering flexible drawdown on the 6 April 2011 when the new rules come into force, head of sales has confirmed...Flexible Drawdown

Just Retirement: OMO is past its sell-by date

17 March 2011. Scrapping the Open Market Option (OMO) and replacing it with a 'pension passport' will help consumers to shop around for annuities. The Pensions Income Choice Association has reinvented shopping around with a three step process that will encourage people approaching retirement to choose between annuity providers, claims Just Retirement...Just Retirement Annuities

Dangerous rush to meet Income Drawdown deadlines

14 March 2011. Scottish Life has warned of the danger of providers rushing to meet the start date to introduce flexible Income Drawdown. Scottish Life, told FT Adviser providers had no hope of meeting the start date of 6 April 2011 saying "We still have not had the results of the consultation on flexible Income Drawdown and it is due to start on the 6 April...Income Drawdown

Income Drawdown Changes Will Benefit Older Pensioners

8 March 2011. Changes to Income Drawdown rules coming into force in April are likely to increase the number of people deciding to use drawdown in their later years. Within the new legislation coming into force from April there were 3 changes that would particularly affect older pensioners use of drawdown. Firstly, the company pointed out that under new 'capped' Income Drawdown...Income Drawdown

Industry anger at EU annuities rates ruling

1 March 2011. Industry experts said the increased cost of compliance is expected to lead to insurance underwriters and pension providers cutting annuity payouts. The head of pensions research at Hargreaves Lansdown, said...Annuity Rates

Annuities: Changing times call for different measures

23 February 2011. The results of the latest Retirement Planner Enquiry, into how recent reform will affect the annuity market, are in. The rate of retirement income...Annuities Market

Just Retirement to launch flexible annuity

23 February 2011. Just Retirement has revealed it is working on a flexible fixed-term annuity product to bring out in the summer...Just Retirement Annuities

New drawdown rates could 'shock' pensioners

28 January 2011. HMRC is creating new figures to calculate Income Drawdown limits which could reduce pensioner incomes, experts warn. The new capped Income Drawdown amounts for individuals will be 100% of their equivalent annuity, rather than 120% as before...Income Drawdown Rates

Variable annuities endangered?

27 January 2011. What does the future holds for the variable annuity market and how that will affect the third way sector as a whole? The third way annuity market has expanded rapidly over the past 4 years with providers developing variable annuities, as well as fixed-term and asset backed annuities...Variable Annuities

MetLife Annuities to distribute Living Time products

14 January 2011. MetLife Annuities will distribute the Living Time Annuities fixed-term annuity products as part of MetLife's expansion strategy. MetLife claimed the deal underlines its continued commitment to product innovation in the UK market and enables it to establish a presence in the rapidly growing fixed-term annuity category which Living Time...Living Time Annuities

'Misleading' Aviva annuity ad banned

21 December 2010. A TV advert for Aviva Annuities, in which the insurer claims it can provide 20% more income for annuity customers, has been banned by the Advertising Standards Authority. The ad features a voiceover saying: "when you retire get up to 20% more income with Aviva". Aviva claims its annuity rates...Aviva Annuities Ad Banned

End of Compulsory Annuities

14 December 2010. You could almost hear the pensions industry raising a collective cheer as the government announced plans to scrap the compulsory annuity purchase requirement. The abolition of the age-75 rule follows years of furious pension industry lobbying...End of Annuities

Pensioners need £20,000 to access flexible drawdown; IFAs to incur training costs

9 December 2010. Access to new flexible Income Drawdown pensions will be restricted to people with a lifetime pension income of a minimum of £20,000 a year, the Treasury says. The rule change is included in a package of draft clauses published today by the Treasury for inclusion in the Finance Bill 2011. Capped Income Drawdown amounts...Income Drawdown

End of compulsory annuitisation in sight

8 December 2010. The government will soon announce its consultation on scrapping compulsory annuitisation at age 75. The plan aims to change current annuity rules that stipulate individuals have to take an income from their pension fund from the age of 75. This can be through buying an annuity or by taking an income directly from their pension fund, known as an alternatively-secured pension. Philip Brown, head of retirement for Partnership Assurance Annuities...Compulsory Annuities

Annuity rates increase but not the start of a trend

29 November 2010. Rising bond yields appear to be feeding through into the annuity market with six insurance companies increasing their rates over the last week. Laith Khalaf, pensions analyst at Hargreaves Lansdown, does not think this is the start of a sustained trend. He claimed the Hargreaves Lansdown annuity...Hargreaves Lansdown Annuities

Just Retirement Annuity Sales up 14 per cent

11 November 2010. Just Retirement's new annuity business sales are up 14.9 per cent to £245.5m according to its interim results. The retirement specialist's annuity policies...Just Retirement Annuities

Hoban defeats extra Equitable Life payments

11 November 2010. Thousands of Equitable Life victims who bought annuities before 1992 will receive no compensation despite a proposed amendment to include them in the government's repayments package...Equitable Life Annuities

Government can't calculate Equitable Life compensation for extra 10,000 annuity holders

10 November 2010. The level of due to 10,000 Equitable Life customers who bought with-profits annuities before 1992 would be "impossible to calculate", Tory MP Jonathon Edwards says. During a debate on the Equitable Life...Equitable Life Annuities

Retirees missing out because of illogical behaviour

20 October 2010. Thousands of people could be missing out on a better retirement income because of an illogical approach to shopping around for the best annuity deals according to Aviva. The retirement specialist said while people are used to comparing prices for routine items like food and holidays, the same logic is not always applied to buying annuities...Aviva Annuities

Just Retirement sales hit £1bn record

19 October 2010. Just Retirement has generated sales of over £1bn for the first time in its history, a year-on-year improvement of 33 per cent. Just Retirement's embedded value has grown by 107 per cent over the last year. Just Retirement said...Just Retirement Annuities

Lansdown cashes in £58m in sale of Hargreaves Lansdown shares

14 October 2010. Stephen Lansdown, co-founder of Bristol-based Hargreaves Lansdown, has taken a further step back from the advisory business after selling more than 13m in ordinary shares. Mr Lansdown's shares were...Hargreaves Lansdown Annuities

Just Retirement acquisition will build on Open Market Option plans

5 October 2010. Just Retirement is acquiring The Open Market Annuity Service (Tomas) from Kerr Henderson. The acquisition is part of the specialist life assurance group's strategic goal to invest in further development of the Open Market Option. Just Retirement said...Just Retirement Annuities

Advisers turn to asset-backed annuities as rates plunge

16 September 2010. Advisers are set to turn their backs on conventional annuities and recommend asset-backed alternatives as annuity rate crashes continue to plague retirees. A study conducted by MGM Advantage suggests more than 90% of IFAs expect the market for...MGM Annuities

Axa to enter variable annuity market

14 September 2010. Axa Annuities is ready to enter the variable annuity market in the UK before the end of the year. The managing director of Axa Global Distributors, said it would complement the newly created Axa Wealth business...Axa Annuities

How will annuity reform affect QROPS?

9 September 2010. Proposed annuity reform will have a big impact on how people take their retirement income. Now that the Government has laid out its proposals for annuity reform...Annuity Reform

September annuity rates on 'even keel'

6 September 2010. Annuity rates have mostly remained constant over the past month with Aviva still in the top spot, according to the latest figures from Alexander Forbes Annuity Bureau. Basing research on a 60-year-old male with a £100,000 purchase, the figures say Aviva offers...Alexander Forbes Annuity Bureau Annuities

Preserving the golden age of annuities

2 September 2010. The chief executive of Partnership Assurance Annuities, discusses the opportunities and problems surrounding the scrapping of the annuity age. We congratulate the Government on its consultation, Scrapping Annuities Age 75, which provides a range of retirement funding options...Partnership Annuities

Why advisers should consider third-way annuity products

27 August 2010. An alternative to conventional annuities and unsecured pensions has emerged as a popular retirement choice, writes Mike Morrison, head of pensions development at Axa Wealth ...AXA Annuities

Stephen Lansdown resigns as Hargreaves Lansdown exec director

27 August 2010. Stephen Lansdown has taken a step back from the management of Hargreaves Lansdown by resigning as executive director to pursue other interests...Hargreaves Lansdown Annuities

Hargreaves Lansdown urges abolition of contracting out

Hargreaves Lansdown said government plans to abolish contracting out into final salary schemes would simplify the pension system and create greater equality between defined benefit and defined contributions...Hargreaves Lansdown Annuities

Origen and PosSol post £2m Q2 losses

Aegon UK's distribution businesses Origen and Positive Solutions posted combined losses of £2m in the 2nd quarter of 2010...Aegon Annuities

Annuity transfer delays can cost £127 a week

Delays in the tansfer of pension savings into retirement income could cost pensioners up to £127 a week...Annuities Transfer

Annuities - Change is afoot

Examining changing times for the annuity market. The 2 main factors affecting the pricing of conventional annuities...Annuities

A quarter of retirees find that their health dramatically worsens during the 1st five years of retirement, according to LV=

The majority of people currently fix themselves into an annuity product for life at their point of retirement...LV Annuities

Scottish Widows says Money worries tops over 50's list of concerns

Some 56 per cent of over 50's are worried about financial stresses when they retire, data from Scottish Widows...Scottish Widows Annuities

Just Retirement hits £1bn mark

Just Retirement said sales of its Equity Release and annuity products topped £1bn during...Just Retirement Annuities

Scrapping annuity rule is move in right direction

Proposals to remove the requirement to annuitise at age 75 are a welcome move which will provide savers with more flexibility to plan their retirement...Annuities

Compulsory annuitisation rules ripped up; ASP axed

The UK Government today proposed bringing to an end rules forcing pension investors to buy an annuity at a specific age saying there should no longer be a deadline by which people "effectively have to annuitise". It says retirees will be able to choose how much to draw down annually...Annuities and Income Drawdown

Annuities: Age 75 - more flexibility for all?

The consultation to end compulsory annuities should lead to increased flexibility for retirees...Compulsory Annuities

Capped drawdown given as annuity alternative

The Treasury is proposing to scrap the age-75 requirement to buy an annuity and give investors the option of drawdown instead. The government said it wanted to simplify the rules on pensions savings by giving retirees the choice of drawdown or buying an annuity...Annuities and Income Drawdown

Reform should not undermine UK annuity sector

Reforming the Age 75 rule will re-invigorate the retirement income market but care should be taken not to undermine the annuity sector...Annuities Age 75 Rule

UK Government set to further relax forced annuities

The Government is expected to throw its weight behind the scrapping of compulsory annuities when it launches a consulation on pensions funding tomorrow. Head of pension research at Hargreaves Lansdown...Hargreaves Lansdown

Retirees want more annuity advice

More pre-retirees are shopping around for an annuity, but some insurers are not providing clear enough information to their clients about their pension Open Market Options, new research has found. A survey of 750 retirees found 67 per cent of respondents who bought an annuity earlier this year used the Open Market Option (OMO) to look for a more competitive rate...Annuity Rates

Axa Wealth poised for variable annuity pilot

Axa Wealth is set to pilot a variable annuity with a select group of IFAs, with a view to rolling it out industrywide in October...Variable Annuities

Saga only top five provider not to cut annuity rates

Saga was the only top five provider not to cut annuity rates following the emergency Budget according to Alexander Forbes Annuity Bureau...Annuity Rates

Hornbuckle warns on pre-55 income drawdown

Hornbuckle-Mitchell warns advisers with Income Drawdown clients of potential problems for clients who want to transfer an uncrystallised fund to one which was nearly all or partly protected rights ...Income Drawdown

Resolution eyes £2.75bn AXA annuities, protection and pensions deal

Resolution Group, the consolidation vehicle which bought Friends Provident (see Friends Life) last year, is in talks to buy Axa UK's annuity, protection and group pensions business for £2.75bn...Friends Provident and Axa Annuities

Government scraps age 75 rule on annuities

The Government will scrap the rule which creates an effective obligation to purchase an annuity by age 75...Annuity Rules

Hargreaves Lansdown: Thatcher better than Cameron

Peter Hargreaves, the founder and CEO of Hargreaves Lansdown, says former Prime Minister Margaret Thatcher was a "million times" better for businesses than David Cameron...Hargreaves Lansdown

Aegon Annuities pulls out of bulk annuities market

Aegon Annuities said the move was part of a drive to cut a quarter of its life and pensions costs in the UK...Aegon Annuities Provider

Advised annuity sales to fall further

Nearly three quarters of UK annuity providers believe advised sales of their product will continue to fall, while execution-only business continues to rise. A total of 24 annuity providers...Annuity Providers

Partnership Annuities to enter Equity Release market

Partnership Annuities is set to become the latest entrant to the Equity Release market after it revealed that it could be planning to launch a product...Partnership Annuities

Rockingham adds MetLife

Retirement income broker Rockingham Retirement has made the MetLife Guaranteed Investment bond the third investment product available through its Retirement Income Triple Investment Account (Rita) drawdown platform. The MetLife...Rockingham / MetLife Annuities

Annuity rates stabilise ahead of Budget

Annuity rates held firm in June ahead of the Emergency Budget, following several months of falling prices. The best level annuity rate from Saga of £6,180 was unchanged from May, the Alexander Forbes Annuity Bureau says. The majority of providers held their rates for the month with only Aviva and Aegon...Annuity Rates

Hargreaves Lansdown boss departs UK for Guernsey

Stephen Lansdown, the Hargreaves Lansdown co-founder and one of the UK's richest individuals, has left Britain for Guernsey. It was acutally Hargreaves Lansdown co-founder Peter Hargreaves who first threatened to exit the UK, before doing a u-turn on his plan to flee. Lansdown, the...Hargreaves Lansdown

Coalition to phase out annuity compulsion

Plans include a review of the retirement age and an end of the requirement to buy an annuity by age 75...Compulsory Annuities

Top Prudential exec slams Govt annuity policy

Government opposition to forced annuitisation ignores the fact people want to buy annuity products, argues Prudential...Prudential Annuities

Just Retirement annuity sales up 87% in Q1

New annuity business at Just Retirement rose to £238.6m in the first three months of 2010...Just Retirement Term Annuities

HMRC ruling traps income drawdown clients

HM Revenue & Customs has confirmed clients aged between 50 and 54 with crystallised benefits are unable to transfer to a new scheme or annuitise without facing unauthorised payment charges...HMRC Income Drawdown

Life after Income Drawdown

The last decade has seen Income Drawdown become the darling of the retirement income market for mass affluent to high net worth customers. Why? Because it offers everything that traditional annuities...MGM Advantage Income Drawdown

MGM Advantage says election result will increase annuity rates

MGM Advantage Annuities has predicted the hung parliament could result in higher annuity rates. "If annuity rates do rise, this will come as welcome relief to the annuity sector because rates in general have been falling"...MGM Annuities

Annuity sales drive Friends Provident's 19% sales growth

Annuities have help drive Friends Provident's (See Friends Lifetime) sales in the first quarter of 2010...Friends Provident Annuities

Variable Annuities, the Next Big Thing

Annuity Products: Discussing the future prospects for variable annuities in the UK ...Fixed Term Annuities

The rise of the annuity

Annuity Products: Discussion on the different annuity products available on the market ...Annuity Products

Annuity rates fall after winter stability

Annuity rates tumbled in April after a brief period of stability during the winter...Annuity Rates

Unlocking annuity choice

Helen Morrissey assesses the prospects for the fixed term annuity market. The fixed term annuity has, up until now, played a relatively small part in the at-retirement marketplace...Fixed Term Annuities

LV Launches Third Way Annuity

LV Annuities has launched Protected Retirement Plan, a variable annuity pension product with a minimum term of three years, which head of annuities...LV Third Way Annuities

Enhanced annuities sales rise 24% to £1.79bn

Sales of enhanced annuities in the UK increased by 24% last year, latest Towers Watson research reveals...Enhanced Annuities

Income Drawdown, Making the grade?

As Income Drawdown approaches its 15th anniversary John Moret assesses whether it has met peoples' needs right. It's nearly fifteen years since the introduction of Income Drawdown in July 1995. Few financial products have caused more debate ' with support for Income Drawdown fluctuating as investment markets oscillate and interest rates rise or fall...Income Drawdown

Just Retirement chief to step down

Just Retirement founder Mike Fuller will step down as chief executive in the summer. He will be succeeded by LV managing director of life and pensions, Rodney Cook, when he retires on 2 July 2010. Fuller, who founded the Equity Release and annuity specialist...Just Retirement

MGM Advantage reveals details of flexible annuity

MGM Advantage Annuities has revealed further details of its asset backed Flexible Income Annuity. The minimum investment required in the new annuity product is £10,000...Flexible Annuities

Hargreaves Lansdown fears Treasury to target basic pension allowance

The basic pension contribution allowance could be the next target in the Government's plans to cut pension relief, according to Hargreaves Lansdown...Hargreaves Lansdown

MGM Advantage set to launch latest annuity product

MGM Advantage, the enhanced annuity provider, has completed its fine-tuning of a flexible asset-backed product in January and is now ready to launch the product...Enhanced Annuities

Medical questions added to Aviva annuity quotes

People looking to take out an annuity with Aviva will now have to answer questions about their health. Merging together the standard plan and the enhanced annuity scheme. Aviva Annuities News...Enhanced Annuities

Aviva shows that more than one in 5 people aged 55 and over live on less than £750 a month

The average income a woman derives from her annuity is £99 a month compared with £151 for the average man. On average, women take out annuities...Pension Annuities

Hargreaves Lansdown profits rise 16% as inflows jump 56%

Hargreaves Lansdown has posted a 16% jump in adjusted pre-tax profits for the six months to end 2009, to £43.1m...Hargreaves Lansdown

Hargreaves Lansdown fears Treasury to target basic pension allowance

The basic pension contribution allowance could be the next target in the Government's plans to cut pension relief, according to Tom McPhail of Hargreaves Lansdown...Hargreaves Lansdown

Just Retirement sales up 26% on strong annuity business

Just Retirement annuity sales have climbed by more than 25% year-on-year, IFA Online reported today. The Equity Release and annuity specialist...Just Retirement Annuities

Shopping around 'can improve annuity income'

Prudential Annuities: Shopping around for annuities using the Open Market Option could prove a very useful option for those seeking such products in the near future, according to one firm. A feature which appears on the Hargreaves Lansdown...Open Market Option

LV Annuities poised to launch fixed term annuity

LV Annuities are poised to launch their much anticipated fixed term annuity product as early as on Monday. IFAs and providers told FTAdviser they expect the arrival of LV's annuity product...Fixed Annuity

Early cut-off dates a threat to annuity applications

Pension providers are warning IFAs of early cut-off dates for new income drawdown and annuity applications in the run up to the April deadline...Income Drawdown and Annuity Application

Hartford Life admits to annuities tax coding errors

An IFA firm has issued a formal complaint to US life insurance giant The Hartford over the incorrect tax treatment of clients who have annuities with its UK subsidiary Hartford Life...Annuities Tax

Older workers 'should not simply opt for default annuities'

Prudential Annuities: It is important that UK consumers look beyond the default annuity products that people's pension providers may offer to them, Sun Life Financial has highlighted...Sun Life Annuities

Consumers 'should research available annuity products'

Prudential Annuities: UK workers who are nearing their retirement should ensure that they take the time to research the annuities that are potentially available to them, according to Rockingham Retirement...Rockingham Retirement Annuities

Just Retirement has reported record annuity sales

Just Retirement reports the majority of sales were in enhanced annuity policy sales which reached £349.3m...Enhanced Annuities

AJ Bell welcomes annuity progress with Conservatives

AJ Bell have welcomed an announcement by the Conservative party that will scrap compulsory annuitisation at age 75 if elected to Government later this year...Compulsory Annuities / ASPs

How to avoid the annuities postcode trap

This can be done buy buying with-profits annuities and flexible annuities, sometimes called variable annuities. The rationale for these annuity products is that...Postcode Annuities

Skandia: Flexible drawdown a hit with pensioners

Pensioners are choosing income drawdown over annuities because of the flexibility it provides, according to a survey by Skandia. The poll of 600 financial advisers found that people are wary of annuities because they want to retain control over their income...Income Drawdown Over Annuities

Annuity rates fell in 2009 and now offer poor returns, latest research shows

Annuity rates fell by an average of over 1.5% in the latter half of 2009 with standard annuities seeing the fastest rate of decline, according to the latest figures to be published. Average annuity rates fell 1.64% in the six months to 31 December 2009, with enhanced rates down 1.33%, while standard rates dropped 2.16%, the Annuity Index from MGM Advantage shows. The index, which tracks the income paid on standard and enhanced annuities...Annuity Rates

Savers, borrowers and pensioners are all vulnerable if figures rise as expected

If an annuity has already been selected and it is fixed, there may be little that can be done to protect against inflation. Anyone approaching retirement has a few more options such as an index-linked annuity which escalates either at a fixed rate or in line with price inflation. The drawback is that they are more expensive than level annuities and will mean starting at a lower level of income but, while the spending power of the level annuity will fall, that of the inflation-linked annuity should remain the same. Another alternative is an unsecured pension...Fixed Annuities

Annuity rates rebound from record lows

'Last year, annuity rates tracked the gilt yields down,ā?¯ said Tim Whiting, director with Alexander Forbes Annuity Bureau. 'There was a slight upturn in gilt yields recently and this is feeding through into higher annuity rates from the leading providers.ā?¯...Annuity Rates

Archived News: Aegon Annuities News | Annuity Bureau Annuities-News | Aviva Annuities News | Axa News | Hargreaves Lansdown Annuities | Hornbuckle Mitchell Annuities News | LV Annuities News | MGM Annuities News | Prudential Annuities News | Saga Annuities News

Make Contact Now

Take action now and uncover the differences

Receive a FREE Pension Annuities Comparison Quote

Please complete the free no-obligation enquiry form and see the surprising differences between one annuity and another. Remember your enquiry is free.

There is no charge for us investigating your policy and you are under no obligation to follow any recommendations that are made.

Your annuity specialist is registered with the Financial Conduct Authority (FCA).

We will:
1. Search the whole of the market for you so you are more able to make a decision
2. Check if you are eligible for an enhanced annuity that could increase your income
3. Give you access to more flexible options including fixed term annuities and income drawdown, should you wish

FULLY CONFIDENTIAL ANNUITY COMPARISON QUOTES WITH NO OBLIGATION

Your Age (You must be aged 55 or over)
Do you already have an annuity? (If so, sorry, we cannot help. Annuities cannot be cashed in at this time.)
Name
Preferred contact phone number
2nd number just in case (optional)
Email address (optional)
Annuities PRIVACY PROMISE: We will never share your data or spam you. Data Protection No. Z1760988
annuities