Why Are Annuity Rates So Low?

Annuity rates have been low since the mid 1950s, investors now receive 45% less value than if they had retired in the 90s. This is down to many different issues, including a higher life expectancy which the population now experience as well as poor stock markets and falling gilt yields. Many consider annuities to be poor value, a sentiment which have given annuities a poor name in the past decade.

Although it seems bleak, annuities can still be valuable and highly beneficial to those who invest in them. After all, they are the number 1 investment vehicle to provide you with a stable and dependable income after you stop working. You can plan for your retirement well with a good annuity.

The key is to shop around for the best rates rather than accepting the first rate you are given. The first rate you are offered is usually given to you from your current pension provider, usually a less attractive deal. By doing some research, you can obtain the best rates or possibly even enhanced rates that you didn’t know you were eligible for.

To receive the best rates you should use an online annuity rates calculator. This enables you to compare the annuity rates side by side so you can really get to grips with what you can get for your money.

For open market option annuity rates, you could also speak to expert teams of annuity advisors, who will be able to tell you what the market is doing and what annuity would suit you the best. They may also be able to tell you if your past or present medical condition would make you qualify for enhanced annuity rates - more attractive rates based on your life expectancy.

Being well informed is key to purchasing your annuity, and with the right guidance and research you can still grab yourself a valuable annuity deal – despite the low annuity rate situation.