Steve Hunt goes through the different options available to clients at retirement
There are three important considerations when deciding on the right retirement income product: investment, investment and investment. Many people perceive annuities to be poor value, but compared to what? Based on average life expectancy, a conventional guaranteed rate level annuity will return circa 3% at best - in fact, it is a little over 2%. According to our Government actuary, a male aged 65 will live for a further 16.63 years. (see Table one). So, for our calculations let's be generous and say that on average an annuity is for a period of 17 years. (see Table two) Therefore, b...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes