🔎 Whether you should get annuity, as savers rush in search of a low-risk retirement income
to 52 per cent – a 14-year high – in just nine months, according to provider Canada Life – as rates can be close to 7 per cent. The return on inflation-linked annuities is up 77 per cent.
A typical annuity worth £100,000 would now pay a 65-year-old pensioner a guaranteed income of £6,873, according to data collected by Canada Life. It added that pensioners would receive their original pension back in just 15 years at these new rates, falling from 22 years at the beginning of the year. Drawing down on a pot of £100,000 at age 65 would probably generate income of £3,523, based on a withdrawal rate of 3.5 per cent and assuming investment growth of 3 per cent and inflation of 2 per cent. This also assumes that 25 per cent tax-free cash has already been taken and £100,000 is what is left.Annuities suit those who want a guaranteed income for the rest of their life and who do not want their retirement fund to be subject to any investment risk.
They provide good piece of mind, but it’s worth bearing in mind that you don’t need to use your whole pension pot to buy one. You could “annuitise” part of it, providing enough income for your household spending, for example, while investing the rest, ie risking the money you can afford to, in the hope the return is better.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Preston Docks retail park sold for more than £3millionThe off-market disposals of unit 1 and 2 Mariners Way is reflecting a net initial yield (NIY) of 6.3 per cent Glenbrook’s Investment team has completed th
Read more »
Sweet treats from 1940s shop sold for £8,000 at auctionDave Walker has sold the contents of his shop to move to the Orkney Islands.
Read more »
Rivian recalls 12k cars – almost every vehicle it has soldA faulty fastener could leave drivers with wheel in hand and no steering control
Read more »
Man Utd 'wanted' Arsenal standout, Romano explains how the Gunners sold 'fantastic project'Fabrizio Romano has revealed that Man Utd were among the clubs who 'wanted' to sign Gabriel Martinelli before his move to Arsenal was finalised.
Read more »
69% of all physical games sold in Japan last month were Splatoon 3 | VGCSplatoon 3 reportedly accounted for nearly 70% of all physical games sold in Japan in September
Read more »