Don't buy now and you couldpay later

post-retirement

Putting off purchasing an annuity in the hope that interest rates will rise is a risky strategy and may lead to uncertainty and a loss of income for retirees

Financial advisers may be reassured by the news that the annuity market remains buoyant and threats to its very existence seem to have subsided, at least for now. The 15 year notional gilt yield, which determines annuity rates, has fluctuated over recent months but, overall, gilt yields have increased and some life offices have followed suit by raising their annuity rates. Providers are cautious, however, as market direction is relatively unpredictable, longevity is continuing to increase and financial reserves are generally low. It follows, therefore, that any recent increases in annuit...