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With the slow recovery following the economic downturn, there have been knock on effects in many markets. The returns on such annuity schemes are lowering and so people are unsure where to invest their money for their retirement.
My Pension Expert provides pension advice and will be able to give comprehensive advice as to your best options – for some an annuity is still a good option. There are some trends we expect to see with annuity schemes to entice customers and to keep their running costs low and the schemes attractive.
If you’re not sure what an annuity actually is, it’s definitely an option that’s worth looking into – you can get a basic overview of what’s involved in this article on the Guardian, and if it seems like something that you think could benefit you post-retirement, then make sure you speak to a professional before you start throwing your money around.
Annuity regulators will need to look at their practices and ensure that they are as fair as possible and possibly change some of their existing schemes. Individuals have seen the interest rates of such schemes drop, not just in the US but in the UK also.
These schemes will need to become more flexible so that it is easier for an investor to leave if they feel their investment is no longer worthwhile; and to make them more attractive to investors.
Although unemployment has reached new highs in recent years, annuity regulators are still struggling to find potential employees that are qualified in the areas that they would normally source.
As a result annuity companies are already changing the way they write their schemes and how they advertise their schemes and employment options. One of these ways is to be more trustworthy and to put people into their establishments who will inspire trust and respect.
To put people’s minds at ease about the current market, schemes will need to be simplified and better explained. Individuals need to have their trust re-gained so as to feel confident in investing their hard-earned money, which will be their lifeline in later life.
