The Telegraph is reporting that annuity rates have been on the rise, and we wanted to share the good news with you, and what it means for pensioners trying to make sense of everything going on. The best thing that you can do is try to make sure that you are on track for retirement. It can be around the corner sooner than you think.
The truth is that if you’re trying to turn your pension pot into an annuity, it looks like you could be looking at more income than ever before.
Annuity rates have gone up, though many people have given up on annuities because the income isn’t as good as it could be. The truth is that you have to understand that an annuity is designed to pay you every single month for the rest of your life. This is a lot of money over time, and it means that you have less stress overall in trying to see how much money you really need to live.
Keep in mind that you’ll probably have other sources of savings, like your ISA accounts. If you have that, your annuities, and some rental income, you can carve out a pretty comfortable living. It might not be as luxurious as it was when you were working, but you have to think about something important; how much is peace of mind really worth to you?
Most people will not go back into the heavy traffic, office politics, and long hours that marked their careers. They want to live life at a slower pace. Sometimes we have to make compromises in order to make that happen. Sometimes that’s frustrating, but that’s life. If you plan things out now, you’ll have a better chance than if you had to live on the State pension alone. While it’s true that our Government does have several schemes to make things happen, we still think that it’s best to focus on doing the right thing in your ballpark, rather than being sucked in to just hoping the government will take care of things for you.
Get started planning your future — it’s well worth it. And with annuity rates rising and looking like they will stay that way, we would daresay that it’s a good time to get into the market. Not quite time for you to go into retirement? That’s fine — it’s best to make sure that you keep your eyes open. Good luck!