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 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.