Annuity Rates, Annuities, Pensions, Divorce
Equity release lifetime mortgages
Home News Annuity Rates Annuities Pension Annuity Impaired Annuity Annuity Quotes Pensions Divorce Resources

4 April 2012 last updated
Retirement annuities income dealt a blow as equities fall worldwide

Income for people purchasing retirement annuities decreased as equity markets fall after the Federal Reserve discounted more stimulus.

Pensioners invested in equities and about to retire were dealt a blow from the fickle markets as they fall today based on fear over the US and European economies with the FTSE-100 index reducing 2.3% or 134 points to end at 5,704.

For pensioners invested in equities this means their funds will also have reduced by as much as 2.3% with a focused equity based fund and so the income they can purchase with a retirement annuity will also be reduced, although standard annuity rates have not reduced.

For a male aged 65 with a fund of £100,000 aged they could have expected an income of £6,112 pa and this has reduced by £140 pa to £5,971 pa in a single day. This illustrates the risks people are taking by not converting to a cash fund before they take their pension annuity.

Annuity income lower with equity fall
  More annuity topics
  April News 2012
  News & articles
  Archive news stories
  Flexi-access drawdown
  Annuity rates tables
  Outlook for 2019
  Annuity rates charts
  15-year gilt yields
  Latest annuity rates

Pension funds decrease with fickle markets

Other markets were also exposed to decreases with the Dow Jones down 124 points at 13,074, the S&P 500 index down over 1.6% and Europe down between 2% and 3%. For the US the issue was the Federal Reserve discounting the possibility of another session of Quantitative Easing (QE) as the US economic indicators did not warrant this action. QE would involve the Federal Reserve injecting money into the economy by buying government bonds which also risks higher inflation.

In Europe the Spanish government had difficulty selling their 10 year bonds and saw the price rise by 0.25% to 5.7% yield. Another survey has shown that the eurozone service sector output has declined and unemployment is at a record 10.8% across the eurozone countries.

Despite the general bad news affecting the equity markets gilt yields have increased with the 15-year gilt yields increasing 4 basis points at 2.75%. This will be due to the lack of support from the Federal Reserve for another round of QE resulting in lower bond and gilt prices and higher yields although not the large reaction experienced last month that saw yields increase by 37 basis points in a single week. Retirement annuity rates remain the same as providers watch to see the direction of gilt yields this month.

As an alternative to the open market option conventional retirement annuity pensioners could receive up to 30% higher initial incomes using an investment backed or with profits annuity. Pensioners would need to accept the slightly higher risk and ideally have a final salary pension or more than one personal pension fund.

Higher incomes could be offered through an enhanced annuity if pensioners suffer from lifestyle medical conditions such as high blood pressure, Cholesterol, are a smoker or are overweight. For more more serious health conditions such as diabetes, heart conditions or cancer an impaired annuity would offer incomes 40% higher.

News related stories:
UK annuity income to benefit from buoyant equity markets
Annuities income and pension fund up as Wall Street hits four year high
Best annuity income threat to pensioners as equities fall
Annuity income at risk as gilt yields and markets fall sharply
UK annuity rates fall as Eurozone fear spreads to markets and gilts
Related internet links:
Guardian - Eurozone fears drag down markets
BBC - Markets down over US and Europe economy fears
Call 020 8816 7501 for a quote
Annuity Rates
  Age Single Joint  
  55 £4,433 £4,127  
  60 £4,914 £4,660  
  65 £5,563 £5,094  
  70 £6,272 £5,976  
£100,000 purchase, level rates, standard
Unisex rates and joint life basis
  Annuity Rates  
Annuity Quotes
  Plan your annuity and get quotes from the 12 leading providers  
  free annuity quote Free Annuity Quotes
  annuity quote no obligation No Obligation
  annuity quote all providers From All Providers
  Annuity Quote  
  Annuity Rates News:

Gilt yields lower as equities fall
Annuity Rates December 2018 Gilt yields are lower with geopolitical tension between the US and China
Annuity rates resist fall in gilt yields
Annuity rates resist fall Annuity rates are steady following gilt yields fall on fears of US slowdown
Retirement income down 14%
Retirement income down Brexit turmoil and equity volatility sends investors to the safety of gilts and bonds
Drawdown numbers hit record high
Pension drawdown withdrawals hit record high

Data from HMRC shows a record 5.9bn accessed in 2018 using drawdown

  Follow Us:
You can follow the latest annuity updates on Twitter or as a fan on Facebook and Google+
  Facebook Page Twitter Page Twitter Page   This website is for marketing purposes only and does not provide specific financial or legal advice. Website security issued by GeoTrust and Equifax. Copyright©2001-19 All Rights Reserved