Investors are bringing retirement plans forward and buying annuities now to take advantage of the recent rally in equity markets, according to Hargreaves Lansdown.
The firm says managed and UK equity funds had jumped by an average of 29% and 38.5% respectively since March and a number of pension savers have had the opportunity to lock in these gains. Hargreaves Lansdown pensions analyst Nigel Callaghan says: "The surge in the stock market has seen many people bringing their retirement plans forward. "Investors are nervous about fund values falling again and want to take risk off their retirement table." The firm says such a move was a good idea - not only to realise equity gains but also because annuity rates are unlikely to climb much higher...
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