The Budget and Annuities

How has the latest budget affected annuity rates and annuity insurance providers.

How has the budget affected annuity rates?

Since April 2015 annuity rates have seen a small decline following the announcement of the UK budget by George Osbourne.

The most significant impact was back in 2008 following the financial market collapse.

Annuity rates ride close to interest rates; presently interest rates are at their lowest ever.

The positive aspect is that with a steadily recovering economy, annuity rates will begin to rise and can perform admirably when economic strength is restored and developed.

The budget announcement opened up greater flexibility for individual pension pots. People now have full access to their entire fund, although anything taken out above 25% of the value is subject to tax laws and rates.

You now have access to your entire pension fund but be aware that anything over 25% is taxable.

Want more information?

Retirement options should never be decided on a whim, they deserve careful consideration. We believe that all our customers should receive the same service and options that we ourselves want in our retirement. If you’re unsure about what is right for you, or you simply want further information to help you make the right decision please talk to us.