According to the Institute and Faculty of Actuaries, the populations ever-increasing longevity is wreaking havoc with the annuity market.
The Institute has recently released a report stating that for a 65-year old male in 2019, the cost of purchasing an annuity could be upto 60% higher than today.
Our View
Many people ask us whether they should buy their pension annuity straight away or wait to see if annuity rates get better.
Our view is simple, you have to weigh up the fact that yes, annuity rates could get better. But, they could also get worse. There is also the fact that the longer you delay purchasing your annuity, the more income you are missing out on.
For example, if you delay your annuity for 5 years and you are being offered £10,000 per year now, you will have given up £50,000 in income by waiting. Is it really worth it?