British annuity levels at 2010 high
The insurance industry saw a rise in annuity levels in March 2011. The rise suggests that annuity rates have reached an all time high for the second time in the past year. Retirees will likely have more income for the coming year.
Experts warn their customers not to become too complacent as they will likely see their annuities fall in the long term. People will likely have to survive on less as the national retirement funds dwindle. It is important to interview company managers and get the best deal that you can for you and your loved one.
Annuity levels still vary for men and women despite rulings by the European Court of Justice (ECJ) that gender is no longer a consideration when determining rates. Britain’s aging population will continue to place pressure on annuity levels as they continue to drop.
Craig Fazzini-Jones, director of MGM Advantage said that ‘Even though rates seem to be stabilising we expect to see a general downward trend.’
Companies are finding new incentives to encourage people to save more of their money as to help them have a great retirement. This will help to ease the current fund and provide larger payments for future retirees.
Investors need greater growth as they cope with the rise in their weekly expenses. Rigid income streams are less likely to provide people with the sort of income that previous generations have enjoyed. Flexible options allow people to maximise their retirement income even if levels continue to fall as predicted.