best possible advice the industry can give is to always shop around for an annuity and seek financial advice before locking in to one
(PRWEB UK) 5 February 2013
Alarming figures have been released by My Pension Expert which show that pensioners are over £14,000 worse off than someone three years ago. Significantly, the decline and downfalls pensions are suffering have not yet past and those who are due to retire shortly, could receive an even smaller pension.
Usually, many people build up a pension pot and purchase an annuity in order to receive a monthly income from it; however, annuities have taken a battering in the last three years.
In the last quarter of 2012, annuity rates fell by a considerable 2.5% and in 2012 as a whole, rates dropped by 12% and more than 21% since 2009. In 2012, a £50,000 pension pot would have paid a yearly income of £3,495, whereas now the pot would generate £2,786.
The general consensus within the annuity arena is that UK gilts being at an all time low, life expectancy rising and the EU gender ruling have played a part in the annuity woes.
Unfortunately, MGM Advantage have commented that things are unlikely to change in the short term and the best possible advice the industry can give is to always shop around for an annuity and seek financial advice before locking in to one, as yearly income can differ depending on lifestyle choices.
My Pension Expert is a company of Diploma Qualified Independent Financial Advisors who specialise in the at retirement market.