Consumers have been gradually shifting back to annuities for a guaranteed income since the pension freedoms were introduced in April 2015, according to new data. Figures from eValue’s quarterly pension freedoms index covering over 17,000 people showed that in October preference for guaranteed income rose to 47%, up from 33% in April. Meanwhile preference for flexible income (i.e drawdown) dropped …
Second-hand annuities – Pro’s and Con’s
The government has stated that from 2017 pensioners will be able to sell their annuities for a lump sum. This would extend pension freedoms to those who’ve already bought a guaranteed income. But can it really work? We wonder… When pension freedom arrived in April 2015, many people missed out. Those who had already bought a guaranteed income no longer …
Basic state pension to rise to £119 per week
Autumn Statement boost for pensioners In Wednesday’s Autumn Statement, the Chancellor will announce the basic state pension will increase to £119.30 a week from April 2016. The BBC reported the basic state pension will get its biggest rise since 2001. The increase equates to 2.9% and will be worth £174.20 extra a year to someone on a full basic state …
Drawdown interest drops and annuities surge six months after pension freedoms
New research has suggested that 10 per cent more people are likely to seek a guaranteed income – such as an annuity – than they were in the immediate aftermath of the introduction of pension freedoms in April this year. The latest index from financial forecasters eValue has revealed that 43 per cent are now exploring a guaranteed income post-retirement, …
Changes to Insurance Premium Tax (IPT)
Date of change: 1st November 2015 On 8th July 2015, George Osborne, Chancellor of the Exchequer, delivered his Summer Budget 2015 to Parliament. One of the most controversial and unexpected features of the Budget was an increase to IPT. Considered a necessity by the Government but a surprise ‘stealth’ tax by industry insiders, the IPT increase has been met with …
Enhanced Annuity providers to merge
Specialist annuity providers Just Retirement and Partnership are planning a £1.7bn merger. The Enhanced Annuity providers are to merge and become the JRP Group, it has been announced today. The companies would raise £150m in equity even though they anticipate annual savings of £40m at a one-off cost of £60m. Both are comfortably capitalised on paper. But meeting the EU’s …