Annuity Rates Drop 21%
If someone has a private pension or occupational pension they can except to receive 21% less than they would have 3 years ago because according to Hargreaves Lansdown, the stock broker company, the annuity rate has dropped 21%.
While the increase does not affect people on a final salary pensions, it could be costly to a lot of people with average private or occupational pensions.
Mr McPhail from Hargreaves Lansdown said, “Annuity rates are at record low levels but there’s nothing to stop them going lower. Factors which could drive them down further include a Japan-style depression hitting the British economy and the introduction of equal annuity rates for men and women at the end of 2012.”
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