We write articles about all aspects of retirement income, especially annuity and drawdown. We also regular appear in the national press and occassionaly on radio and TV.
In the Chinese animal zodiac 2020 is the year of the rat and what a ratty year it has been!
Who at the beginning of the year would have predicted how devastating the coronavirus pandemic would be? I remember writing a blog on 4th February 2020 in which I said: “this is obviously a serious matter and could easily result in a global financial crisis and one headline asks; ‘is China's Coronavirus the next Black Swan?”
The Happiest Man on Earth
“The Happiest Man on Earth I listened to an inspiring radio interview with Eddie Jaku who has just written a book entitled “The Happiest Man on Earth” Eddie has just celebrated his 100th birthday which is amazing considering he survived the horrors of Nazi concentration camps. He was rescued by American soldiers after spending three months living in a cave and eating slugs and ...
The annuity case
The case for annuities can be made very simply; they are the only policy that pays a high level of guaranteed income for the rest of your life. In this sense an annuity is a pension, and in the rush to introduce pension freedoms it is easy to lose sight of why you probably saved for a pension in the first place.
Annuity rates may be low at the moment but they are the only way of guaranteeing a regular income for the rest of your life with peace of mind and security no matter how long you live.
Is now a good time to arrange an annuity?
“Is it a good time to purchase an annuity”?
The thinking is that now fund values have increased since the March 2020 crash it might make sense for some people, especially those with relatively small drawdown pots, to purchase an annuity.
I understand from several annuity providers that annuity sales have increased significantly so it will be helpful to see if there is a case for purchasing annuities at the moment.
The recent fiasco with exam results in the UK highlights the risk and dangers of using algorithms to solve complex problems. The algorithm unfairly disadvantaged students from less privileged backgrounds.
This touched a raw nerve with me because I have always wondered whether robo financial advice disadvantages those with small amounts of financial wealth.
Annuity secrecy: the cost of pension kickbacks
The big picture – When you purchase an annuity from a broker they will get paid commission What's the problem? – Commission was banned for financial advisers in 2013 What can de done? – Get financial advice before you arrange an annuity. Ali Hussain wrote a very good article in the Times newspaper on Saturday 18th July in which he highlighted the commissions paid on non-adv ...
July Annuity Update
Annuities are still in the doldrums and there is no sign that rates will increase in the short term. As long as interest rates remain low and inflation benign, annuities well remain at the current levels. It is not all bad news for those thinking about purchasing an annuity because financial markets have made a limited recovery. This means that those invested in equity funds wi ...
Sales of fixed term
The big picture – Fixed term income plans are popular because they don't lock people in for life. What's the problem? – Lifetime annuities have a poor reputation because of miss-selling. Could fixed term suffer the same fate? What can de done? – Make sure they are sold / advised properly e.g. end commission bias. It seems like some of the fixed term income providers have sc ...
When we talk about risk most people automatically think about investment risk. However, important as it is, this is only one of the risks that you need to watch out. Managing retirement risks There are many other different risks you should take into consideration during your retirement. These range from the risk that you might be too cautious and therefore get locked into low r ...