Annuity rates for UK pensions have fallen dramatically, leaving pensioners with significantly less pension income to fall back on.
According to findings from the MGM Advantage Index, average enhanced and conventional annuity rates have dropped by 4.7% and 2.45% in the last three months.
This is bad news for people approaching retirement in the UK, and again highlights the negatives of the UK pension system.
Aston Goodey, sales and marketing director at MGM Advantage, said: “These findings are shocking and will put even more pressure on those people in or approaching retirement. Retirees are faced with a triple whammy of making their income go further as people live longer, while high inflation erodes their purchasing power and annuity rates continue to fall.
British expatriates who are entitled to a UK pension should be aware they have options that enable them to bypass an annuity purchase. The QROPS pension transfer takes the pension out of the UK, and creates a number of benefits for the holder, with no need to purchase an annuity simply one of the bonuses. Visit the Pensions and Retirement Planningsection for more information.