Thursday, August 4, 2011
Annuity Rate: Will it decide Your Retirement?
Are you happy at work? But the future may bring some concern, regarding the source of income. We are concerned of our retired life, whether it will bring happiness or sorrow! Generally people walk up to the age of 65 or in some rare cases it is 70. Nowadays the average salary of an UK office worker is about 20,000 Pounds. You may not need that much to sustain an ordinary life. There are certain ways to boost your income in retirement.
The best available annuity rate is about 7%, while the old age pension is about 100 Pounds a week. To get some average pay in retirement, you will need about 70,000 Pounds. But actually most of us retire with much less in our pocket. Since many companies do not have a proper pension system in place or are in the process of doing it with active help from the social welfare department or the Financial Authorities.
Summer is normally a quiet time for annuities and this year is also no exemption. The last update is the month of May, so there is very little change about it. There are different charts available from other every annuity company. Different companies follow different charts according to the required policies, prescribed.
The relative stability of annuity rate and it almost masks a bond on the volatile bond market starting on the last week of the month of June. For the next couple of months the bond market will slow down, due to the long term demand of the investors on fixed interest investments. This is leading the Annuity companies to increase their annuity rate. Those, who are planning for a long time to purchase annuity should not waste time, neither the annuity rate will go down.