Where am I? 
Home Pensions - Retail Annuities
Categories: Annuities| Income Drawdown| Investment| Lifetime Income| Retirement Income
Topics: annuity rates| gilts| FTSE| Hargreaves Lansdown
Incomes from annuities have fallen 14% since the start of the year due to stock market turmoil.
The combined effect of falling share prices and gilt yields has sliced value from both pension investments and annuity rates.
A 65-year-old man with a £100,000 pension pot can only secure an income of £926 per year less than in January, according to Hargreaves Lansdown.
Today, the FTSE fell below 5,000 between opening and midday, shaving billions from share prices.
At the same time, the Government Actuary Department (GAD) rate, which is used to calculate annuity and income drawdown rates, fell to its lowest ever level of 2.75% for October.
This is due to the drop in 15-year gilt yields, on which the GAD is loosely based.
| Share | |
| Comment | Annuity income drops 14% since January |
More from retirement planner
Email alerts
Recommended reading
Categories
Topics
Comments
Related articles
Most Read
Audio / Visual
With the industry's biggest fund managers, IFAonline welcomes you to the media centre.
This year we have 14 awards designed to mark out the very best products in a highly competitive and innovative market. This includes three new awards for 2011 to reflect the developments in this rapidly growing market: Best Dual/Multi-Index Product, Best Structured (Oeic) Fund and Best Structured Product Provider.
Events
Poll
|
|
Job search
Ifaonlinejobs will open the right investment career path for you. Search hundreds of vacancies on www.ifaonlinejobs.co.uk now
In Focus
In the case of those people approaching retirement or those who have recently retired, the...
Viewpoints
Growth of the annuity market - Over the next five years, the ‘at retirement market' is predicted...
sponsored by
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment