Is this the right time for you to consider a lifetime pension annuity as an option for retirement planning?
In some cases, lifetime pension annuity rates are the highest recorded since 2014. The amount of income you could get for your pension pot when it is converted into a lifetime pension income could have increased by over 30% since the start of 2022**
But that doesn’t make the decision any easier or any more suitable for your client. A lifetime Pension Annuity provides 100% secure lifetime pension income – it is guaranteed, but with very little flexibility. No matter how high the income – does this suit your clients plans?
How much income would they get? Remember, a lifetime pension annuity income is based on your clients personal circumstances – health, lifestyle, postcode, requirements.
We haven’t discussed annuities for the last 8-10 years but the market has people asking questions and wanting to know more.
This might be the time for some clients to think about what they are doing and if this is the right time to be considering annuities. But the point is not what the rates are but what is in the best interest of the client, what are their objectives, does it fit with their plans, what they need and meet their goals, and if not why is the questions being asked now?
Reference:
https://www.actuarialpost.co.uk/article/is-now-the-right-time-to-reconsider-an-annuity-21000.htm
Watch our short video where John explains the changes in annuity rates:
