Poor annuity rates and a bleak outlook for future improvements mean retirees should delay their purchase for as long as possible, an adviser has warned.
IFA firm Almary Green said the negative effects of quantitative easing, upcoming Europe-wide regulation under Solvency II and the introduction of unisex annuity rates in December will all constrain future annuity rate rises. Director Charles Lamb said people approaching retirement should put off buying an annuity until things improve. He said: "These measures will all put downward pressure on annuity rates which means that individuals should try to avoid locking into a rock bottom annuity rate today for what could be a 20 to 30 year retirement span. "In ten years' time, they could ...
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