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Annuity and Drawdown Blog

I am hesitant to predict the 2020 trend for annuities as I have got it wrong in the past. I did predict 2017 would be the year of the annuity but I was clearly wrong about that.

However, there are good reasons to think that 2020 will be a better year of annuities as the Brexit uncertainty fades away. Therefore, providing the UK’s finances don’t end up in a mess I predict a slow increase in annuity rates and more retired investors converting their pension pots into income by purchasing annuities.

Will annuity rates go up or down next year?

The outlook for annuities is inextricably linked with the future trends in long-term yields. So, the question is will yields increase next year? If so by how much and how will this affect annuities?

We are a few weeks into the election campaign and the outcome is far from certain. The campaign will be the biggest talking point between now and December 12th, so I wanted to offer some thoughts on our approach to investments in these uncertain times. The bulk of this message is taken from a briefing note from a well-known investment house. Whilst I acknowledge their contribu ...

A balanced view of annuities and drawdown What is this all about? – Explaining the difference between annuities and drawdown. Why is it important? – converting your pension pot into cash and income is important and you should analyse all the options, not just the one you like at first sight. What is the point? – A financial adviser will give you a balanced view but i ...

Many people think they don’t need advice and end up making their own decisions without my help.

Why should I worry about this? After all grown-ups have the freedom to make their own financial decisions and make their own mistakes.

I worry because many people may be sleep walking into a danger zone where they may suffer a financial shock which will leave them seriously short of money in retirement.

A scandal or a cock up? This is the question I ask myself when I hear about Prudential’s £23 million fine for failures relating to non-advised annuities sales. This follows Standard Life’s £ 30 million fine in July 2019. As with most high profile public cases, there is a bit of both. First, I declare an interest as I have formally and informally helped both companies in the pa ...

I recently read a good article about non-advised annuity commissions and I think it is helpful to investigate the issue of non-advised versus advised annuities. I have been on both sides of the fence I start by saying that I have seen both sides of the fence and both advised and non-advised annuity services should result in the client getting the highest possible annuity inco ...

Blow for pensioners as bond market rally hits annuities This was the headline for a story in the Financial Times – see - Blow for pensioners as bond market rally hits annuities These are the notes I provided for the FT Annuities are very expensive Annuities are very expensive at the moment which is another way of saying the rates are very low. The reason is simple; gilt a ...

Drawdown – sounds simple but it’s complicated Drawdown is easy to understand – you simply invest your pension pot in suitable investments and then you take income payments when you need them. The income can be regular monthly / quarterly income payments or ad hoc payments or a combination of both. You have total flexibility and there are two things to watch out for; don’t pay ...

Annuities; legalised theft or best way to convert capital into income? We have been involved with annuities since they first became a topic of conversation almost 30 years ago. It is probably true to say that before 1990 hardly anyone knew much about annuity but that all changed with the launch of specialist annuity brokers in the early 1990’s such as Annuity Direct which late ...

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This website is run by William Burrows and publishes generic information on annuities, drawdown and other related retirement income matters. Any information you use is at your own risk and does not constitute financial advice.

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