With stock market volatility an ever present threat since 2008 no matter which country you happen to live in, knowing what you might actually get for your retirement has become far less certain than it once was.
(PRWEB UK) 22 August 2012
Annuities are what you buy when you reach retirement age in the UK in return for an income that will fund retirement. This works well if the annuity rate is high however Colordarcy.com ask, what if it falls as it has done this month to 2.09%
Loxley McKenzie, Managing Director of Colordarcy.com said, “With stock market volatility an ever present threat since 2008 no matter which country you happen to live in, knowing what you might actually get for your retirement has become far less certain than it once was.
According to the FT this month yields on 15 year gilts fell to 2.02 per cent compared to 2.75 per cent only 4 months ago. This is having a dramatic effect on pensions and the indications are that the trend of falling annuity rates will be here for some time yet according to analysts at Colordarcy.com.
Annuities could actually fall to levels that are worth little more than the actual capital that is put in if the trend continues.
McKenzie added, “We don’t expect annuity rates to fall forever and they can only fall so far.
They will no doubt rise in the future, however for those nearing retirement now, things are likely to get even worse before they get better.
The alternative to all this pension uncertainty is to invest in UK property. Much has been written about the fact that UK property prices are fairly static at the moment, however the real opportunities are in UK hotel room investments, care homes and high yielding student property.
Experts at Colordarcy.com recommend investing in hotel rooms and student property rather than running around the country dealing with tenant issues and boiler problems as can be the case with traditional buy to let investments.
London hotel rooms are a great hands free alternative that will provide a guaranteed yield approaching 10% in London. Investors can invest £50,000 in and make nearly £5,000 a year for the first 2 years according to Colordarcy.
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.
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