Inflation is predicted to rise greatly next year, therefore lowering the annuities unless inflation protection is purchased
(PRWEB UK) 8 November 2012
A rise in retirees since last year has not been matched by increased annuity sales.
The number of 65-year-olds taking an annuity has fallen 25% since 2009.
Figures from MGM Advantage highlight all annuity rates have dropped by 20% in the last three years.
Inflation is predicted to rise greatly next year, therefore lowering the annuities unless inflation protection is purchased.
Hargreaves’ head of pension research suggested savers may be unable to afford to retire or are relying on other savings.
Scott Mullen of My Pension Expert said "It is not surprising that retirees are avoiding an annuity purchase given the poor rates on offer at the moment. Retirees should consider the other options available at retirement and take independent financial advice"
My Pension Expert is a company of Diploma Qualified Independent Financial Advisors who specialise in the at retirement market.